The Contribution Margin Is the

question 17

Multiple Choice

The contribution margin is the

• A) contribution the business can afford to give to charity
• B) difference between revenue and net profit
• C) cost of a menu item
• D) the gross profit made from a menu item
• E) food cost percentage

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Definitions:

Upward Slope

A graphical representation in which a line or curve moves higher as it progresses from left to right, indicating an increase in the variable being measured.

Price Of Gasoline

The amount of money charged per unit volume of gasoline, affected by factors such as crude oil prices, taxes, supply, and demand.

Price Of Oil

The cost per barrel of crude oil as determined by global markets.

Supply Of Gasoline

The supply of gasoline refers to the total quantity of gasoline that producers are willing and able to sell at various prices over a certain period, influenced by factors like production costs and global oil prices.