Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 (Click the icon to view the contribution margin income statement.) For each type of customer, determine both the contribution margin per customer and the contribution margin ratio. Round to two decimal places. Which type service is more profitable? 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. (Round your answer to the nearest cent.) Contribution margin per customer Commercial . Residential = Calculate the contribution margin ratio. Select the formula, then calculate the contribution margin ratio for each business segment. (Round to two decimal placesthe nearest hundredth percent-X.XX%.) = Contribution margin ratio % Commercial Residential % Which type service is more profitable? The business segment had the highest contribution margin ratio - X Data table Residential Commercial 1,100 Total 2,300 Number of Customers 1,200 Service Revenue $ 77,000 $ 18,480 48,000 $ 24,000 125,000 42,480 Variable Costs Contribution Margin 58,520 24,000 82,520 56,000 Fixed Costs $ 26,520 Operating Income Print Done
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