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Contribution Margin Income Statement Contribution Margin Ratios Commercial Residential Total Contribution margin ratio Service Revenue $ . Service revenue 180,000 $ 72,000 250,000 $ 55,000
Contribution Margin Income Statement Contribution Margin Ratios Commercial Residential Total Contribution margin ratio Service Revenue $ . Service revenue 180,000 $ 72,000 250,000 $ 55,000 430,000 127,000 Contribution margin $ 108,000 Commercial Variable Costs + $ 180,000 60 % Contribution Margin 108,000 195,000 Residential $ 195,000 - $ 250,000 78 % 303,000 25,000 Fixed Costs $ 278,000 Operating Income Print Done Print Done segment is higher. The contribution margin ratio for the segment is higher. This is between the commercial and residential business segments. Shelton 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 500 customers. Using the data below, determine the average amount Shelton 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 Shelton 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 Average variable costs per customer Average contribution margin per customer What caused the difference in contribution margin in the two segments? segment is higher. This is The total contribution margin and the average contribution margin per customer for the caused by a difference in both the v segment is higher. The contribution margin ratio for the v between the commercial and residential business segments. The average sales revenue per customer is higher for customers than customers. However, the average variable cost per customer is higher for customers than customers. The net result is that the average contribution margin per customer is lower for V customers than customers
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