Dairy Days Ice Cream sells ice cream cones for $5 per customer. Variable costs are $2 per cone. Fixed costs are $2900 per month. What is Dairy Days' contribution margin per ice cream cone?

Name: Dairy Days Ice Cream sells ice cream cones for $5 per customer. Variable costs are $2 per cone. Fixed costs are $2900 per month. What is Dairy Days' contribution margin per ice cream cone?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Contribution margin = sales price - variable cost
Contribution margin per ice cream cone = $5 - $2 = $3

Dairy Days Ice Cream Sells Ice Cream Cones for $5