Welcome Services Inc.provides catering services.The company has three segments-Standard,Deluxe,and Premium.The company provides the following data for its three segments for the month of July:
The business segments had the following number of customers: Standard,30; Deluxe,20; and Premium,40.The total fixed costs for the month amounts to $2,500.
Requirements:
a)Calculate the contribution margin ratio for each business segment.
b)Compute the service revenue per customer,variable cost per customer,and contribution margin per customer for each business segment.

Question

Welcome Services Inc.provides catering services.The company has three segments-Standard,Deluxe,and Premium.The company provides the following data for its three segments for the month of July:
  The business segments had the following number of customers: Standard,30; Deluxe,20; and Premium,40.The total fixed costs for the month amounts to $2,500.
Requirements:
a)Calculate the contribution margin ratio for each business segment.
b)Compute the service revenue per customer,variable cost per customer,and contribution margin per customer for each business segment.

Quizplus · Accepted Answer

The Answer of Welcome Services Inc.provides catering services.The company has three segments-Standard,Deluxe,and Premium.The company provides the following data for its three segments for the month of July:
  The business segments had the following number of customers: Standard,30; Deluxe,20; and Premium,40.The total fixed costs for the month amounts to $2,500.
Requirements:
a)Calculate the contribution margin ratio for each business segment.
b)Compute the service revenue per customer,variable cost per customer,and contribution margin per customer for each business segment.