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Food Item Contribution Margin

Item Contribution Margin=SP-IFC
(IFC)Item Food Cost
(SP)Food Selling Price
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The Food Item Contribution Margin calculator computes the Food Item Contribution Margin based on the food item selling price (SP) and cost (FC).

INSTRUCTIONS: Choose the preferred currency units and enter the following:

  • (IFC)  This is the cost of the food item.
  • (SP)  This is the selling price of the food item.

Food Item Contribution Margin: The calculator returns the margin in U.S. dollars.  However, this can be automatically converted to other currencies via the pull-down menu.
 

Resource:

  • Dopson, Lea R., and David K. Hayes. Managerial Accounting for the Hospitality Industry. Hoboken, NJ: Wiley, 2009. Print.
  • "Contribution Margin Definition | Investopedia." Investopedia. N.p., 19 Nov. 2003. Web. 07 Aug. 2015.