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I need help Wonderland Pool Cleaning Service provides pool cleaning services to residential customers. The company has three employees, each assigned to specific customers. The
I need help
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 varia 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 Data Table Wonderland Pool Cleaning Service Income Statement For the Month Ended July 31, 2018 Brandi Total Service Revenue $ Requirement 1. Calculate the contribution margin ratio for each business segment. Contribution margin Service revenue = Contribution margin ratio Brandi 3200 + 8,000 = 40 % Myfred 5,040 7,200 = 70 % Freeman 1,680 5,600 = 30 % Requirement 2. The business segments had the following numbers of customers: Brandi, 30; Myfred, 100; and Freeman, 90. Compute the service revenue per customer Service revenue Variable costs Contribution margin per customer per customer per customer Brandi 80 48 32 Myfred 80 24 56 Freeman 80 56 24 Requirement 3. Which business segment was most profitable? List some possible reasons why this segment was most profitable. How might the various reasons affect The Myfred business segment was the most profitable because the variable cost per customer was the highest. Possible reasons for the profitability of this business segment include the following: (Select all that apply.) 1,800 $ 720 Myfred 6,000 $ 3,000 Freeman 5,400 $ 2.700 13,200 6.420 Variable Costs Contribution Margin 1,080 3,000 2,700 6,780 6,000 Fixed Costs $ 780 Operating Income Print Done A. Better routes with shorter drive times allowing more customers to be served in the most profitable business segment 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: 5 Click the icon to view the income statement.) Read the requirements A. Employees in the most profitable business segment cutting corners when performing service calls OB. Reducing the amount of pool chemicals used in service calls for the most profitable business segment C. Lower employee wages in the most profitable business segment OD. Lengthy routes with longer drive times allowing fewer customers to be served in the most profitable business segment E. Higher revenue per customer in the most profitable business segment F. Lower revenue per customer in the most profitable business segment O G. Better routes with shorter drive times allowing more customers to be served in the most profitable business segment H. Higher employee wages 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. increased employee turnover because of low wages. B. increased customer base due to competitive service prices. OC. dissatisfied customers because of inadequate service. OD. less fuel and maintenance costs because of lengthier routes. E. increased service costs because of reduced pool chemical usage causing poor water quality and additional service calls. OF. less fuel and maintenance costs because of efficient routes No hinhlu romancator omnlovese resultinn in an incresce in contribution marninStep by Step Solution
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