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Worksheet METRICS 4

# Worksheet METRICS 4 - Worksheet Metric 4 Contribution...

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Worksheet: Metric 4 Contribution Margin 1) Mohan, an artist, draws caricatures on the waterfront pier. It costs him approximately \$5 in materials (paper and markers) for each caricature he makes. He sells each caricature for \$20. Calculate the contribution margin in terms of dollars and percent. Contribution Margin (\$) = Revenue – COGS Contribution Margin (%) = [Contribution per Unit (\$) / Sale Price per Unit (\$)] * 100% = [(Sale Price per Unit – Variable Cost per Unit) / Sale Price per Unit] *100% 2) The Hotel Grill Bar sells a set lunch for \$12. The food cost of sales used in producing each set lunch is \$5. Additional variable costs are \$3 per lunch. The fixed costs of the restaurant are \$3 per meal. What is the contribution margin expressed in dollars and percent? Variable Expenses = Contribution Margin (\$) = Revenue – Variable Expense Contribution Margin (%) = [Contribution per Unit (\$) / Sale Price per Unit (\$)] * 100% = [(Sale Price per Unit – Variable Cost per Unit) / Sale Price per Unit] * 100%

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Worksheet METRICS 4 - Worksheet Metric 4 Contribution...

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