Divine Pool Cleaning Service provides pool cleaning services to residential customers. The company has three employees, each assigned to specific customers. The company considers each employee's territory as a business segment. The company incurs variable costs that include the employees' wages, pool chemicals, and gas for the service vans. Fixed 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. Contribution margin ratio Bently II % Molden : % Felch 1. II % Requirement 2. The business segments had the following numbers of customers: Bently, 70; Molden, 110; and Felch, 50. Compute the service revenue per customer, variable cost per customer, and contribution margin per customer for each business segment. Service revenue Variable costs Contribution margin per customer per customer per customer Bently Molden Felch Requirement 3. Which business segment was most profitable? List some possible reasons why this segment was most profitable. How might the various reasons affect the company in the long term? 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. Employees in the most profitable business segment cutting corners when performing service calls B. Lower employee wages in the most profitable business segment C. Higher employee wages in the most profitable business segment D. Higher revenue per customer in the most profitable business segment E. Lengthy routes with longer drive times allowing fewer customers to be served in the most profitable business segment F. Lower revenue per customer the most profitable business segment G. Reducing the amount of pool chemicals used in service calls for the most profitable business segment H. Better routes with shorter drive times allowing more customers to be served in the most profitable business segment How might the various reasons affect the company in the long term? F. Lower revenue per customer in the most profitable business segment G. Reducing the amount of pool chemicals used in service calls for the most profitable business segment H. Better routes with shorter drive times allowing more customers to be served 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 employee turnover because of low wages. B. highly compensated employees resulting in an increase in contribution margin. C. less fuel and maintenance costs because of lengthier routes. D. increased customer base due to competitive service prices. E. dissatisfied customers because of inadequate service. F. less fuel and maintenance costs because of efficient routes. G. increased service costs because of reduced pool chemical usage causing poor water quality and additional service calls. Data Table - Divine Pool Cleaning Service Income Statement For the Month Ended July 31, 2024 Bently Molden Felch Total Service Revenue $ 2,100 $ 3,300 $ 1,980 1,500 $ 600 6,900 3,210 630 Variable Costs Contribution Margin 1,470 1,320 900 3,690 3,500 Fixed Costs 190 Operating Income Print Done