Paradise 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 comany incurs variable costs that include the employees' wages, pool chemicals, and gas for the service vans Fixed (Click the icon to view Data table Read the requirements Paradise Pool Cleaning Service Income Statement Requirement 1. Calculate For the Month Ended July 31, 2018 Bently Morrissey Filip Total Service Revenues 2.100 $ 7,000 $ 7.700 $ 16.800 Bently 1.260 Variable costs 3,500 2.310 Morrissey 7070 Contribution Filip Margin 840 3,500 5.390 9,730 Requirement 2. The busin Fixed Costs 1.500 service revenue per customer, variable cost 8230 Operating Income Service 5 perc Bently Morrissey Filip Print Done Requirement 3. Which busines the company in the long term might the various reasons affect - X Requirements The business ser Possible reasons for the profita 1. Calculate the contribution margin ratio for each business segment. CA. Reducing the amount 2. The business segments had the following numbers of customers: B. Employees in the most Bently, 30: Morrissey, 100; and Filip, 110. Compute the service revenue per customer, variable cost per customer, and contribution C. Higher revenue percus margin per customer for each business segment. D. Lower revenue per cus 3. Which business segment was most profitable? List some possible E. Better routes with short reasons why this segment was most profitable. How might the various reasons affect the company in the long term? F. Higher employee wage G. Lower employee wager H. Lengthy routes with lon How might the various reasons Print The possible side effects of the A. highly compensated employees resulting in an increase in contribution margin, B. increased customer base due to competitive service prices C. less fuel and maintenance costs because of lengthier routes. ID. Increased service costs because of reduced pool chemical usage causing poor water quality and additional service calls. E, increased employee turnover because of low wages. F. less fuel and maintenance costs because of efficient routes G. dissatisfied customers because of inadequate service Done Paradise 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. Foed 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 1 Contribution margin ratio Bently Morrissey Filip The Requirement 2. The business sements had the following numbers of customers: Bently, 30: Morrissey, 100; and Filip. 110. Compute the service revenue per customer, variable cost per customer, and contribution margin per customer for each business segment. Service revenue Variable costs Contribution margin per customer per customer per customer Bantly Morrissey Filip 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 company in the long term? business segment was the most profitable because the Possible reasons for the profitability of this business segment include the following: (Select all that apply.) A. Reducing the amount of pool chemicals used in service calls for the most profitable business segment 18. Employees in the most profitable business segment cuting corners when performing service calls c. Higher revenue per customer in the most profitable business segment D. Lower revenue per customer in the most profitable business segment E. Better routes with shorter drive times allowing more customers to be served in the most profitable business segment OF. Higher employee wages in the most profitable business segment 6. Lower employee wages in the most profitable business segment OH Lengthy routes with longer drive times aliowing 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 highly compensated employees resulting in an increase in contribution margin. B. Increased customer base due to competitive service prices. C. less fuel and maintenance costs because of lengthier routes D. Increased service costs because of reduced pool chemical usage causing poor water quality and additional service calls E increased employee turnover because of low wages. OF less fuel and maintenance costs because of efficient routes G. dissatisfied customers because of inadequate service