Wilson's Meats Has Computed Their Fixed Costs to Be $1

Multiple Choice

Wilson's Meats has computed their fixed costs to be $1.32 for every kilogram of meat they sell given an average daily sales level of 500 kilograms. They charge $8.56 per kilogram of top-grade ground beef. The variable cost per kilogram is $6.58. What is the contribution margin per kilogram of ground beef sold?

A) $.66
B) $1.32
C) $1.98
D) $6.58
E) $8.56