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Arcadia Pool Cleaning Service provides pool cleaning services to residential customers. The company has three employees, each assigned to specific customers. The company considers
Arcadia 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 temtory 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. Borden McMillan Fip . Contribution margin ratio % % % 1. Data table Service Revenue Variable Costs Contribution Margin Fixed Costs Operating Income Arcadia Pool Cleaning Service Income Statement For the Month Ended July 31, 2024 Borden McMillian 3,300 $ 990 2,310 8,800 $ 3,520 5,280 Filip 9,900 $ 4,950 4,950 Total 22,000 9,460 12,540 1,000 11,540 I Dalc Requirements 1. Calculate the contribution margin ratio for each business segment. 2. The business segments had the following numbers of customers: Borden, 30; McMillian, 80; and Filip, 90. Compute the service revenue per customer, variable cost per customer, and contribution margin per customer for each business segment. 3. Which business segment was most profitable? List some possible reasons why this segment was most profitable. How might the various reasons affect the company in the long term? Arcadia 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 Borden McMillan Fp Contribution margin ratio % % % Data table Service Revenue Variable Costs Contribution Margin Fixed Costs Operating Income Arcadia Pool Cleaning Service Income Statement For the Month Ended July 31, 2024 Borden McMillian 3,300 $ 990 2,310 Print 8,800 $ 3,520 5,280 Done Filip 9,900 $ 4,950 4,950 Total 22,000 9,460 12,540 1,000 $ 11,540 - X Requirements 1. Calc Requirements 1. Calculate the contribution margin ratio for each business segment. 2. The business segments had the following numbers of customers: Borden, 30; McMillian, 80; and Filip, 90. Compute the service revenue per customer, variable cost per customer, and contribution margin per customer for each business segment. 3. Which business segment was most profitable? List some possible reasons why this segment was most profitable. How might the various reasons affect the company in the long term? Print Done - X.
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