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14 of 14 (13 complete) HW Score: 68.86%, 68.86 of 100 pts Score: 2.24 of 7 pts Book Sales in Southern California https://www.booksalefinder.com/CAS.html#x7... * ET

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14 of 14 (13 complete) HW Score: 68.86%, 68.86 of 100 pts Score: 2.24 of 7 pts Book Sales in Southern California https://www.booksalefinder.com/CAS.html#x7... * ET CU TOHTOI LUJ Question Help O Sean Company provides carpet cleaning services to commercial and residential customers. The commercial business segment provided services to 300 customers. The residential business segment provided services to 400 customers. Using the data below, determine the average amount Sean Company charged each type of customer for services, the average variable cost per customer, and the average contribution margin per customer, rounded to two decimal places. What caused the difference in contribution margin in the two segments? (Click the icon to view the contribution margin income statement.) (Click the icon to view the contribution margin ratios of the two segments.) Determine the average amount Sean Company charged each type of customer for services, the average variable cost per customer, and the average contribution margin per customer, rounded to two decimal places. Commercial Residential Average service revenue per customer S 700.00 $ 500.00 350.00 120.00 Average variable costs per customer 350.00 380.00 Average contribution margin per customer What caused the difference in contribution margin in the two segments? The total contribution margin and the average contribution margin per customer for the Residential segment is higher. The contribution margin ratio for the Residential segment is higher. This is caused by a difference in both the sales revenue per customer and the variable cost per customer between the commercial and residential business segments. The average sales revenue per customer is higher for commercial customers than residential customers. However, the average variable cost per customer is higher for commercial customers than residential customers. The net result is that the average contribution margin per customer is lower for commercial customers than residential customers. Contribution Margin Income Statement Contribution Margin Ratios Service Revenue Commercial Residential $ 210,000 $ 200,000 $ 105,000 48,000 Total 410,000 153,000 Contribution margin ratio 50 % + $ Variable Costs Contribution Margin Contribution margin $ 105,000 $ 152,000 Commercial Residential Service revenue 210,000 200,000 105,000 152,000 + $ 76% 257,000 40,000 Fixed Costs $ 217,000 Print Done Operating Income Print Done

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