Question
Hampton Internet Services is an Internet service provider for commercial and residential customers. The company provided the following data for its two types of customers
Hampton Internet Services is an Internet service provider for commercial and residential customers. The company provided the following data for its two types of customers for the month of August.
Data table
Commercial: Number of Customers 700, Service Revenue $77,000, Variable Costs 21,560, Contribution Margin 55,440
Residential: Number of Customers 1,100, Service Revenue 99,000, Variable Costs 41,580, Contribution Margin 57,420
Total: Number of Customers 1,800, Service Revenue 176,000, Variable Costs 63,140, Contribution Margin 112,680, Fixed Costs 55,000, Operating Income 57,860
Calculate the contribution margin per customer. Begin by selecting the formula labels, then enter the amounts and calculate the contribution margin per customer for each business segment.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started