Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bliss Pool Cleaning Service provides pool cleaning services to residential customers. The company has three employees, each assigned to specific cusiomers. The company considers each

image text in transcribed
image text in transcribed
image text in transcribed
Bliss Pool Cleaning Service provides pool cleaning services to residential customers. The company has three employees, each assigned to specific cusiomers. The company considers each employee's territory as a business segment. The company incurs variable costs that incluce the employees' wages, pool chemicals, and gas for the service vans. Fixed costs include deprociation on the service vans. Following is the income statement for the month of July, (Click the icon to viow the income statement.) Resd the teguirements. Requirement 1. Calculate the contribution margin ratio for each business segment, C. Higher emplayee wages in the most profiable business segment D. Better routes with shorter drive times alowing more customers to be served in the most prot E. Employees in the most proftable business segment cutting corners when performing sarvice F. Lower employee wages in the most profitable business segment G. Lengthy routes with longer deive times allowing fewer customers to be served in the most peo H. Lower revenue per cuntomer in the most peof table business segment How might the various reasons affect the compary in the long tern? The possibie side eftects of the items identified in the preciding step could be (Seiect at that apply) A. diseatisfied customers because of inadequate semice: B. increased service costs beciluse of reduced pool chemical usege causing poor mater qualty C. increased customer base due to competitive service prices. D. less fuel and maintenance costs because of lengthier routes. E. highly componsated employees resulting in an increase in contribution margin. F. increased employee tumover because of low wages. 6. less fuel and maintenance cosis bocause of efficient routes. Data table te the se ow might th

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

Step: 3

blur-text-image

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

Contemporary Auditing E4 Im

Authors: KNAPP

4th Edition

0324048602, 978-0324048605

More Books

Students also viewed these Accounting questions

Question

6. How do histories influence the process of identity formation?

Answered: 1 week ago