Question
10) Healthy Environs Company provides cleaning services for residential and commercial customers. Following are data for the month of June: Residential Commercial Total Number of
10) Healthy Environs Company provides cleaning services for residential and commercial customers. Following are data for the month of June:
|
| Residential | Commercial | Total |
| Number of customers | 600 | 400 | 1,000 |
| Service revenue | $ 48,000 | $ 40,000 | $88,000 |
| Variable costs | 14,000 | 22,000 | 36,000 |
| Contribution margin | 34,000 | 18,000 | 52,000 |
| Fixed costs |
|
| 41,000 |
| Operating income |
|
| $11,000 |
For each type of customer, determine both the contribution margin per customer and the contribution margin ratio. What type of service is more profitable?
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THIRD PARTY RISK MANAGEMENT An Essential Guide To Best Practices Including Common Interview Questions And Their Expert Answers
Authors: Akingbade Akinfenwa
1st Edition
1649537417, 978-1649537416
