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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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    https://brainmass.com/business/accounting/relevant-non-relevant-costs-347246

    Solution Preview

    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 ...

    Solution Summary

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

    $2.19

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