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Sawyer Company provides carpet cleaning services to commercial and residential customers. Using the data below, determine the contribution margin ratio for each business segment, rounded
Sawyer 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 | $105,000 | $57,600 | $162,600 | ||
Variable Costs | 31,500 | 21,600 | 53,100 | ||
Contribution Margin | 73,500 | 36,000 | 109,500 | ||
Fixed Costs |
|
| 30,000 | ||
Operating Income |
|
| $79,500 |
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