6.7K views · 53 reactions | Contribution Margin Ratio #costaccounting #CVP #contributionmargin Study Point | Study Point | Facebook

14K views · 120 reactions | Gross Profit vs Contribution Margin #accounting #grossprofit #contributionmargin Study Point | Study Point | Facebook

What’s Contribution Margin and Breakeven Point? 👇🏼 Contribution Margin = Menu Price – Food Cost Two items can have the same price and still produce completely different profit outcomes. For example: 🍕 $10 Pizza → $3 food cost → $7 contribution margin 🍗 $10 Wings → $6 food cost → $4 contribution margin When your weekly fixed costs are $10,000, that difference is everything: 🍕 You’d need 1,428 pizzas to break even 🍗 Or 2,500 orders of wings This is why national chains like Chipotle, Texas Ro