Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Promise Land Pool Cleaning Service provides pool cleaning servi sidential customers. The company has three employees, each assigned to specific customers. The company considers

image text in transcribed

Promise Land Pool Cleaning Service provides pool cleaning servi sidential 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 Benton Milan $ 59 SA Contribution margin + Service revenue = Contribution margin ratio 2,940 + $ 4,200 = 70 % 3,300 - $ 6,600 = 50 % 3,600 - $ 6,000 = 60 % Felchi $ Requirement 2. The business segments had the following numbers of customers: Benton, 70, Milan, 110; and Felch, 100. 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 Benton Milan Felch

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Information Systems

Authors: Vernon Richardson, Chengyee Chang

1st edition

78025494, 978-0078025495

More Books

Students also viewed these Accounting questions

Question

1. Think out loud as you solve problems.

Answered: 1 week ago