Contribution Margin - What Is It, Formula, Calculator
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Contribution Margin - What Is It, Formula, Calculator
Apr 24, 2023
wallstreetmojo.com
What’s Contribution Margin and Breakeven Point? 👇🏼 Contribution Margin = Menu Price – Food Cost Two items can have the same price and still produce completely different profit outcomes. For example: 🍕 $10 Pizza → $3 food cost → $7 contribution margin 🍗 $10 Wings → $6 food cost → $4 contribution margin When your weekly fixed costs are $10,000, that difference is everything: 🍕 You’d need 1,428 pizzas to break even 🍗 Or 2,500 orders of wings This is why national chains like Chipotle, Texas Ro
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What’s Contribution Margin and Breakeven Point? 👇🏼 Contribution M…
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