Bright Castle Company provides cleaning services to commercial and residential customers.The commercial business segment provided services to 310 customers and the residential business segment provided services to 635 customers. $$\begin{array} { l r r r }
& \text { Commercial } & \text { Residential } & \text { Total } \
\text { Service Revenue } & \$ 85,000 & \$ 119,000 & \$ 204,000 \
\text { Variable Costs } & \underline { 25,000 } & \underline { 56,000 } & \underline { 81,000 } \
\text { Contribution Margin } & 60,000 & 63,000 & 123,000 \
\text { Fixed Costs } & \underline { 42,000 } & \underline { \$ 47,000 } & \underline { \$ 9,000 } \
\text { Operating Income } & \underline { \underline { \$ 18,000} } & \underline { \underline { \$ 16,000 } } & \underline { \underline { \$ 34,000 } }
\end{array}$$ State which segment has the higher average variable cost per customer and provide the amount of the average variable cost per customer for that segment.(Round the answer to the nearest dollar.)

Question

Bright Castle Company provides cleaning services to commercial and residential customers.The commercial business segment provided services to 310 customers and the residential business segment provided services to 635 customers. $$\begin{array} { l r r r } 
& \text { Commercial } & \text { Residential } & \text { Total } \
\text { Service Revenue } & \$ 85,000 & \$ 119,000 & \$ 204,000 \
\text { Variable Costs } & \underline { 25,000 } & \underline { 56,000 } & \underline { 81,000 } \
\text { Contribution Margin } & 60,000 & 63,000 & 123,000 \
\text { Fixed Costs } & \underline { 42,000 } & \underline { \$ 47,000 } & \underline { \$ 9,000 } \
\text { Operating Income } & \underline { \underline { \$ 18,000} } & \underline { \underline { \$ 16,000 } } & \underline { \underline { \$ 34,000 } }
\end{array}$$ State which segment has the higher average variable cost per customer and provide the amount of the average variable cost per customer for that segment.(Round the answer to the nearest dollar.)

Quizplus · Accepted Answer

The Answer of Bright Castle Company provides cleaning services to commercial and residential customers.The commercial business segment provided services to 310 customers and the residential business segment provided services to 635 customers. $$\begin{array} { l r r r } 
& \text { Commercial } & \text { Residential } & \text { Total } \
\text { Service Revenue } & \$ 85,000 & \$ 119,000 & \$ 204,000 \
\text { Variable Costs } & \underline { 25,000 } & \underline { 56,000 } & \underline { 81,000 } \
\text { Contribution Margin } & 60,000 & 63,000 & 123,000 \
\text { Fixed Costs } & \underline { 42,000 } & \underline { \$ 47,000 } & \underline { \$ 9,000 } \
\text { Operating Income } & \underline { \underline { \$ 18,000} } & \underline { \underline { \$ 16,000 } } & \underline { \underline { \$ 34,000 } }
\end{array}$$ State which segment has the higher average variable cost per customer and provide the amount of the average variable cost per customer for that segment.(Round the answer to the nearest dollar.)

Bright Castle Company Provides Cleaning Services to Commercial and Residential