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Garys coffee shop (GCS) provides you the following information: Price received for each cup of coffee sold$4.00 Cost per cup of coffee $1.00 Shop managers
Garys coffee shop (GCS) provides you the following information:
Price received for each cup of coffee sold$4.00
Cost per cup of coffee $1.00
Shop managers salary$2,500 per month
Shop managers commission $.50 per cup of coffee soldRental cost$1,000 per month plus $.20 per cup of
coffee sold
Utilities cost$2,000 per month
In January 2013, GSC sold 2,000 cups of coffee. What was GSCs contribution margin for the month?
A. $8,000
B. $4,600
C.$6,000
D. ($500)
E. ($900)
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