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Sam Company provides carpet cleaning services to commercial and residential customers. Using the data below, determine the contribution margin ratio for each business segment, rounded
Sam Company provides carpet cleaning services to commercial and residential customers. Using the data below, determine the contribution margin ratio for each business segment, rounded to two decimal places: Commercial Residential Total Service Revenue $54,600 $83,200 $137,800 Variable Costs 21,840 31,200 53,040 Contribution Margin 32,760 52,000 84,760 Fixed Costs 30,000 Operating Income $54,760 Select the formula, then, calculate the contribution margin ratio for each business segment. (Round to two decimal placeslong dashthe nearest hundredth percentlong dashX.XX%.) Part 2 Contribution margin Service revenue = Contribution margin ratio Commercial = %
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