Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Analyzing profitability analysis, service company Burlington Internet Services is an Internet service provider for commercial and residential Customers. The company provided the following data for
Analyzing profitability analysis, service company Burlington Internet Services is an Internet service provider for commercial and residential Customers. The company provided the following data for its two types of customers for the month of August: For each type of customer, determine both the contribution margin per customer and the contribution margin ratio. Round to twos decimal places. Which type of service and more profitable? Number of Customers Service Revenue Variable costs Contribution Margin Fixed Costs Operating Income Commercial 200 $ 32,000 8320 23,580 Residential 600 $ 72,000 27,360 44,640 Total 800 $ 104,000 35,680 68,320 53,000 $ 15,320
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started