Harvard University Contribution Margin Statement for Three Organizations Worksheet

Create contribution Margin statement for all 3 fairs (SD, LA, Orange county) using the info provided: Business is selling baked potatoes at 3 carnivals

Break-even analysis:
Fixed cost: total cost of supplies + total cost of equipment = $7,970.22 + $25,145.34 = $33,115.56 + 0.22 Sales
Labor cost for LA fair: $9,990
Labor cost for Orange county fair: $12,870
Labor cost for San Diego fair: $14,220
Variable cost for just potato: $0.1399 per potato
Variable cost for potato plus free condiments: $0.29561 potato
Variable cost: 0.48021 per potato
Sale price for potato: $7.00
Sale price for potato + condiments: $7.50
80% of people will buy with condiments.
CM per unit: 7 – 0.48 = $6.52
CM ratio: 6.52 / 7 = 0.9314

——————————————