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costs include depreciation on the service vans. Following is the income statement for the month of July: (Click the icon to view the income statement.)
costs include depreciation on the service vans. Following is the income statement for the month of July: (Click the icon to view the income statement.) Read the requirements. Requirement 1. Calculate the contribution margin ratio for each business segment. The business segment was the most profitable because the Possible reasons for the profitability of this business segment include the following: (Select all that apply.) a. Higher revenue per customer in the most profitable business segment B. Lengthy routes with longer drive times allowing fewer customers to be served in the most profitable business segment. C C. Employees in the most profitable business segment cutting corners when performing service calls D. Reducing the amount of pool chemicals used in service calls for the most profitable business segment. E. Lower employee wages in the most profitable business segment F. Better routes with shorter drive times allowing more customers to be served in the most profitable business segment. G. Higher employee wages in the most profitable business segment H. Lower revenue per customer in the most profitable business segment How might the various reasons affect the company in the long term? The possible side effects of the items identified in the preceding step could be (Select all that apply.) A. increased customer base due to competitive service prices. B. increased service costs because of reduced pool chemical usage causing poor water quality and additional service calls. C. less fuel and maintenance costs because of lengthier routes. D. less fuel and maintenance costs because of efficient routes. E. dissatisfied customers because of inadequate service. F. increased employee turnover because of low wages. G. highly compensated employees resulting in an increase in contribution margin. costs include depreciation on the service vans. Following is the income statement for the month of July: (Click the icon to view the income statement.) Read the requirements. Requirement 1. Calculate the contribution margin ratio for each business segment. The business segment was the most profitable because the Possible reasons for the profitability of this business segment include the following: (Select all that apply.) a. Higher revenue per customer in the most profitable business segment B. Lengthy routes with longer drive times allowing fewer customers to be served in the most profitable business segment. C C. Employees in the most profitable business segment cutting corners when performing service calls D. Reducing the amount of pool chemicals used in service calls for the most profitable business segment. E. Lower employee wages in the most profitable business segment F. Better routes with shorter drive times allowing more customers to be served in the most profitable business segment. G. Higher employee wages in the most profitable business segment H. Lower revenue per customer in the most profitable business segment How might the various reasons affect the company in the long term? The possible side effects of the items identified in the preceding step could be (Select all that apply.) A. increased customer base due to competitive service prices. B. increased service costs because of reduced pool chemical usage causing poor water quality and additional service calls. C. less fuel and maintenance costs because of lengthier routes. D. less fuel and maintenance costs because of efficient routes. E. dissatisfied customers because of inadequate service. F. increased employee turnover because of low wages. G. highly compensated employees resulting in an increase in contribution margin
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