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Following is the income statement for the month of July. ( Click the icon to view the income statement. ) Read the requirements Requirement 1
Following is the income statement for the month of July.
Click the icon to view the income statement.
Read the requirements
Requirement Calculate the contribution margin ratio for each business segment.
tableContribution margin ratBysonMornisseyFitz
Requirements
Calculate the contribution margin ratio for each business segment.
The business segments had the following numbers of customers: Byson, ; Morrissey, ; and Fitz, Compute the service revenue per customer, variable cost per customer, and contribution margin per customer for each business segment.
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?
Data table
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