PC Solutions,Inc.provides services to corporate and individual customers.During the month of June,the corporate business segment provided services to 500 customers and earned $60,000 in revenue.The individual business segment provided services to 400 customers and earned $35,000 in revenue.The variable costs for the corporate and individual business segments amounted to $32,000 and $25,100,respectively.In addition,the fixed costs of the company amounted to $7500.Calculate the contribution margin from each customer of the individual business segment.(Round your answer to the nearest cent.)
A)$56.00
B)$24.75
C)$41.00
D)$6.00

Question

Quizplus · Accepted Answer

The contribution margin is the difference between the revenue and the variable costs. For the individual business segment, the contribution margin is $35,000 - $25,100 = $9,900. The contribution margin per customer is $9,900 / 400 = $24.75.