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Wonderland Pool Cleaning Service provides pool cleaning services to residential customers. The company has three employees, each assigned to specific customers. The company considers each
Wonderland 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 Brandi Milan Filip Contribution margin ratio % % % Data table Wonderland Pool Cleaning Service Income Statement For the Month Ended July 31, 2024 Brandi Milan Filip Total Service Revenue $ 5,000 $ 10,000 $ 3,000 $ 18,000 Variable Costs 2,000 3,000 1,500 6,500 Contribution Margin Fixed Costs Operating Income 3,000 7,000 1,500 11,500 1,000 $ 10,500 Print Done Requirements 1. Calculate the contribution margin ratio for each business segment. 2. The business segments had the following numbers of customers: Brandi, 50; Milan, 100; and Filip, 30. Compute the service revenue per customer, variable cost per customer, and contribution margin 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 in the long term? Print Done
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