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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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