What is the food service term for the amount of money remaining from a sale after subtracting the sold itemâ s cost from its selling price? Check average Food cost percentage Contribution margin Cost of food sold

Question

Business

Simon Daugherty

13 December, 04:15

What is the food service term for the amount of money remaining from a sale after subtracting the sold itemâ s cost from its selling price? Check average Food cost percentage Contribution margin Cost of food sold

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Iyana Blair · Answer 1

Contributing margin.

Explanation:

Contributing margin is calculated by deducting the cost of producing a food item from its selling price. This represents the portuin of sales revenue that is not used up by cost.

It shows the profit a business eventually makes after considering its costs incurred.

This is an important consideration for businesses because it shows if a business venture is profitable and worth continuing. When the contributing margin is negative, it means that the business is running at a loss.