Question
professional pool cleaning service provides pool cleaning services to residual customers. the company has three employees, each assigned to specific customers. the company considers each
professional pool cleaning service provides pool cleaning services to residual customers. the company has three employees, each assigned to specific customers. the company considers each employee's terriyory 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: service revenue, birman 3000 meech 3500 frond 2000 total 8500. variable costs, birman 1500 meech 2450 frond 1200 total 5150. contribution margin, birman1500 meech 1050 frond 800 total 3350. fixed costs total 3000, operating income total 350. requirements: 1. calculate the contribution margin ratio for each business segment. 2. the business segments had the following numbers of customers: birman 60, meech 70, frond 40. compute the service revenue 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 long term?
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