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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

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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. 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 % Byson Milan 9 Faulkner % per custom Requirement 2. The business segments had the following numbers of customers: Byson, 110 Milan, 30; and Faulkner. 100. Compute the service revenue Data Table - X s most profitable. How might the various Total 21,600 10.350 Byson Milan Paradise Pool Cleaning Service Faulkner Income Statement For the Month Ended July 31, 2018 Requirer reasons Byson Milan Faulkner Service Revenue $ 9.900 $ 2,700 $ 9,000 $ The 2.970 Variable Costs 1,080 6,300 Possible Contribution Margin 6,930 1,620 2.700 DAL Fixed Costs B.LA $ Operating Income C. D. RI Print Done E B F. Higher employee wages in the most profitable business segment 11.250 5,000 6,250 jess segment s segment . Choose from any list or enter any number in the input fields and then continue to the next question, customers. The company considers each employees territory as pool chemicals, and gas for the service vans. Fixed costs include depreciation on the BE (Click the icon to view the income statement.) Read the requirements. Requirement 1. Calculate the contribution margin ratio for each business segment. 11 = HI Byson Milan Contribution margin Fixed costs Faulkner Number of customers Requirement 2. I Number of segments Operating income Service revenue Variable costs he following numbers of customers: By per custo Byson Milan Paradise Pool Cleaning Service Income Statement Faulkner 0 aradise Pool Cleaning Service provides pool cleaning services to residential customers. The company has three employees, e ustomers. The company considers each employee's territory as a business segment. The company incurs variable costs that ir ool chemicals, and gas for the service vans. Fixed costs include depreciation on the service vans. Following is the income state (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 Byson Milan Contribution margin Fixed costs Faulkner % Number of customers Requirement 2. The business segments had the fo Number of segments 3: Byson, 110, Milan, 30; and Faulkner, 100. Con per custom Operating income i Data Table Service revenue Variable costs Byson Milan Faulkner Requirer reasons Paradise Pool Cleaning Service Income Statement For the Month Ended July 31, 2018 Byson Milan Faulkner $ 9.900 S 2.700 5 9.000 $ 2.970 1,080 6,300 s most profitable Service Revenue Total 21.600 10.350 The Variable Costs Possible 6,930 1,620 2,700 Contribution Margin Fixed Costs DA LI 11.250 5,000 6.250 B. LO $ Operating Income ] C. LI ess segment D. RI Print Done E. B s segment F. Higher employee wages in the most profitable business segment Choose from any list or enter any number in the input fields and then continue to the next question. Faulkner Requirement 2. The business segments had the following numbers of customers: Byson, 110, Milan, 30; and Faulkner, 100 Compute the service revenue per customer, variable cost per customer, and contribution margin per customer for each business segment, Service revenue Variable costs per customer Contribution margin per customer per customer Byson Milan Faulkner han VICE 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? 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.) A. Lower revenue per customer in the most profitable business segment B. Lower employee wages in the most profitable business segment C. Lengthy routes with longer drive times allowing fewer customers to be served in the most profitable business segment D. Reducing the amount of pool chemicals used in service calls for 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 OG Employees in the most profitable business segment cutting comers when performing service calls H. Higher revenue per customer 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 service costs because of reduced pool chemical usage causing poor water quality and additional service calls B. increased employee turnover because of low wages. C. less fuel and maintenance costs because of lengthier routes, D. highly compensated employees resulting in an increase in contribution margin. E. less fuel and maintenance costs because of efficient routes F. increased customer base due to competitive service prices. D G dissatisfied customers because of inadequate service. LUME Requirement 3. Which business segment was most profitable? List some possible reasons why thi reasons affect the company in the long term? The business segment was the most profitable because the Poss e profitability of this business segment include the following: (Select all that a Byson A per customer in the most profitable business segment er iuston Milan E e wages in the most profitable business segment Faulkner with longer drive times allowing fewer customers to be served in the most pro D. Reducing the amount of pool chemicals used in service calls for the most profitable business D E. Better routes with shorter drive times allowing more customers to be served in the most profita OF. Higher employee wages in the most profitable business segment G. Employees in the most profitable business segment cutting corners when performing service H. Higher revenue per customer 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 service costs because of reduced pool chemical usage causing poor water quality an B. increased employee turnover because of low wages. C. less fuel and maintenance costs because of lengthier routes. D. highly compensated employees resulting in an increase in contribution margin. E. less fuel and maintenance costs because of efficient routes F. increased customer base due to competitive service prices. O G. dissatisfied customers because of inadequate service. Choose from any list or enter any number in the input fields and then continue to the next question nt.) s most profitable? List some possible reasons why this segment was most profitable. How might the vario ost profitable because the usiness segment include the contribution margin per customer was the lowest. nost profitable business segi revenue per customer was the highest. profitable business segment revenue per customer was the lowest. es allowing fewer customers variable cost per customer was the highest cals used in service calls for variable cost per customer was the lowest. s allowing more customers to t profitable business segment usiness segment cutting corners when performing service calls e most profitable business segment company in the long term? tified in the preceding step could be (Select all that apply.) of reduced pool chemical usage causing poor water quality and additional service calls. cause of low wages

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