i - Data Table - X Wonderland Pool Cleaning Service Income Statement For the Month Ended July 31, 2018 Borden Morrissey $ 9,900 $ 8,100 $ 2,970 4,860 Fitz Total Service Revenue 6,300 $ 3,150 24,300 10,980 Variable Costs Contribution Margin Fixed Costs 6,930 3,240 3,150 13,320 3,500 $ 9,820 Operating Income Print Done Wonderland 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 Borden % % Morrissey Fitz % Requirement 2. The business segments had the following numbers of customers: Borden, 110; Morrissey, 90; and Fitz, 70. Compute the service revenue per customer, variable cost per customer, and contribution margin per customer for each business segment. Service revenue Variable costs Contributic per customer per customer contribution margin per customer was the lowest. Borden revenue per customer was the highest. per cus revenue per customer was the lowest. Morrissey Fitz variable cost per customer was the highest. variable cost per customer was the lowest. Requirement 3. Which business segment was most profitable? List some low 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.) Choose from any list or enter any number in the input fields and then continue to the next question. Possible reasons for the profitability of this business segment include the following: (Select all that apply.) A. Higher employee wages in the most profitable business segment B. Higher revenue per customer in the most profitable business segment C. Lower employee wages in the most profitable business segment D. Reducing the amount of pool chemicals used in service calls for the most profitable business segment E. Lower revenue per customer in the most profitable business segment OF. Employees in the most profitable business segment cutting corners when performing service calls OG. Better routes with shorter drive times allowing more customers to be served in the most profitable business segment H. Lengthy routes with longer drive times allowing fewer customers to be served in the most profitable business segment H. Lengthy routes with longer drive times allowing fewer 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. less fuel and maintenance costs because of lengthier routes. | B. dissatisfied customers because of inadequate service. C. increased customer base due to competitive service prices. D. less fuel and maintenance costs because of efficient routes. | E. increased service costs because of reduced pool chemical usage causing poor water quality and additional service calls. F. increased employee turnover because of low wages. G. highly compensated employees resulting in an increase in contribution margin. i - Data Table - X Wonderland Pool Cleaning Service Income Statement For the Month Ended July 31, 2018 Borden Morrissey $ 9,900 $ 8,100 $ 2,970 4,860 Fitz Total Service Revenue 6,300 $ 3,150 24,300 10,980 Variable Costs Contribution Margin Fixed Costs 6,930 3,240 3,150 13,320 3,500 $ 9,820 Operating Income Print Done Wonderland 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 Borden % % Morrissey Fitz % Requirement 2. The business segments had the following numbers of customers: Borden, 110; Morrissey, 90; and Fitz, 70. Compute the service revenue per customer, variable cost per customer, and contribution margin per customer for each business segment. Service revenue Variable costs Contributic per customer per customer contribution margin per customer was the lowest. Borden revenue per customer was the highest. per cus revenue per customer was the lowest. Morrissey Fitz variable cost per customer was the highest. variable cost per customer was the lowest. Requirement 3. Which business segment was most profitable? List some low 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.) Choose from any list or enter any number in the input fields and then continue to the next question. Possible reasons for the profitability of this business segment include the following: (Select all that apply.) A. Higher employee wages in the most profitable business segment B. Higher revenue per customer in the most profitable business segment C. Lower employee wages in the most profitable business segment D. Reducing the amount of pool chemicals used in service calls for the most profitable business segment E. Lower revenue per customer in the most profitable business segment OF. Employees in the most profitable business segment cutting corners when performing service calls OG. Better routes with shorter drive times allowing more customers to be served in the most profitable business segment H. Lengthy routes with longer drive times allowing fewer customers to be served in the most profitable business segment H. Lengthy routes with longer drive times allowing fewer 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. less fuel and maintenance costs because of lengthier routes. | B. dissatisfied customers because of inadequate service. C. increased customer base due to competitive service prices. D. less fuel and maintenance costs because of efficient routes. | E. increased service costs because of reduced pool chemical usage causing poor water quality and additional service calls. F. increased employee turnover because of low wages. G. highly compensated employees resulting in an increase in contribution margin