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The Eastpointe Caf's average lunch sells for $12, while its variable costs per lunch average $8.00. It plans to advertise a Monday lunch special for
The Eastpointe Caf's average lunch sells for $12, while its variable costs per lunch average $8.00. It plans to advertise a Monday lunch special for $11. The special would cost Eastpointe $7.75 per mean (variable costs). An ad in the local paper to promote the special would cost Eastpointe \$200. 1. What is the original Contribution Margin (CM)? (use 2 decimal places for dollars and cents) What is the original Contribution Margin Ratio (CMR)? (use 3 decimal places, ex: .123 or .555 2. What is the lunch special Contribution Margin (CM)? (use 2 decimal places for dollars and cents) What is the lunch special Contribution Margin Ratio? (use 3 decimal places, ex: .123 or .555 The Eastpointe Caf's average lunch sells for $12, while its variable costs per lunch average $8.00. It plans to advertise a Monday lunch special for $11. The special would cost Eastpointe $7.75 per mean (variable costs). An ad in the local paper to promote the special would cost Eastpointe \$200. 1. What is the original Contribution Margin (CM)? (use 2 decimal places for dollars and cents) What is the original Contribution Margin Ratio (CMR)? (use 3 decimal places, ex: .123 or .555 2. What is the lunch special Contribution Margin (CM)? (use 2 decimal places for dollars and cents) What is the lunch special Contribution Margin Ratio? (use 3 decimal places, ex: .123 or .555
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