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Relevant and non-relevant costs

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How do you put labor cost increase and higher fuel cost has caused food cost increase to your business into a contribution margin formula?

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Solution Summary

The relevant and non-relevant costs for labor increase and higher fuel costs are determined. The contribution margin formula is given.

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Dear student,

How do you put labor cost increase and higher fuel cost has caused food cost increase to your business into a contribution margin formula?

Contribution margin formula = Total sales- total variable costs
Contribution margin formula can also be written as = (selling price per unit*number of units sold)-(variable cost per unit*number of ...

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