Question
Hunger Games, Inc. provides catering services. The company has three segments: Standard, Deluxe, and Premium. The company provided the following data for its three segments
Hunger Games, Inc. provides catering services. The company has three segments: Standard, Deluxe, and Premium. The company provided the following data for its three segments for the month of July:
| Standard | Deluxe | Premium |
No. of customers | 30 | 20 | 40 |
Service revenue | $9,000 | $8,200 | $8,600 |
Variable costs | $5,500 | $3,800 | $4,200 |
The total fixed costs for the month were $2,500.
Requirements (show your calculations)
a) Calculate the contribution margin ratio for each business segment.
b) Compute the service revenue per customer, variable cost per customer, and contribution margin per customer for each business segment.
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