Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

Through how many processing stages do the products go? p-945

Answered: 1 week ago