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The Maryland Cafe's average lunch check is $12.00, with an average variable cost of $8.00. The manager plans to advertise a Friday lunch special
The Maryland Cafe's average lunch check is $12.00, with an average variable cost of $8.00. The manager plans to advertise a Friday lunch special for $11.00 with an average variable cost of $7.50 per meal. The expense for advertisement promotion would be $250.00. 1. What is the contribution margin of the cafe's average lunch? 2. What is the contribution margin ratio of the cafe's average lunch? 3. What is the contribution margin of the proposed Friday lunch? 4. What is the contribution margin ratio of the proposed Friday lunch? 5. How many lunch covers must be sold to cover the Friday lunch special promotion? 6. How many lunch covers must be sold to make a $10,000 profit profit?
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