Variable costs (pick all that apply) in total, change in direct proportion to the changes in volume of sales Remain the same on a PER UNIT basis are considered part of the nut' which must be covered before a profit is made do not change relative to sales or volume While a Contribution Margin tells you a lot of information about potential profit and can help decide business strategies, it is most powerfully used IN RELATION to other numbers and metrics rather than on its own True False Mary's Bar has shown the following average results per month: Sales of 7,500 beers $30,000 total $4 per beer Cost of Beer sold $6,000 total $.80 per beer Fixed Expenses $18,000 $2.40 per beer To attract more customers, Mary is considering hiring a local band on Monday's for $1500 per month. She projects this will increase business by an estimated $600 per month. Should she hire the band. Answer yes or no and show supporting figures. Contribution Margin can best be defined as The amount each unit for sale contributes to your profit, which is then used to pay for all operating costs The amount needed to cover your Variable Expenses Another way to define "costs of goods sold" The combination of wages and food costs, and should always be less than 70% Hotels which solely rent rooms generally work with a higher contribution margin than a restaurant. True False