Choice Coffee Has Computed Their fiXed Costs to Be

question 4

Multiple Choice

Choice Coffee has computed their fixed costs to be $.20 for every cup of coffee they sell given an average daily sales level of 600 cups. They charge $1.65 per cup of coffee. The variable cost per
Cup is $.45. What is the contribution margin per cup of coffee sold?

• A) $.65
• B) $.90
• C) $1.00
• D) $1.20
• E) $1.65

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