Wilson's Meats Has Computed Its Fixed Costs to Be

Multiple Choice

Wilson's Meats has computed its fixed costs to be $.60 for every pound of meat it sells given an average daily sales level of 500 pounds. It charges $3.89 per pound of top-grade ground beef. The variable cost per pound is $2.99. What is the contribution margin per pound of ground beef sold?

A) $0.30
B) $0.60
C) $0.90
D) $2.99
E) $3.89