Top Breed Meats has computed its ﬁxed costs to be £.60 for every pound of meat it sells given an average daily sales level of 500 pounds.It charges £3.89 per pound of top-grade ground beef.The
Variable cost per pound is £2.99.What is the contribution margin per pound of ground beef sold?

Question

Quizplus · Accepted Answer

The contribution margin per pound of ground beef sold can be calculated as follows:
Contribution Margin = Selling Price per Pound - Variable Cost per Pound
= £3.89 - £2.99
= £0.90
Therefore, the best choice is option C, which is £0.90.

Top Breed Meats Has Computed Its ﬁXed Costs to Be