Briar Company provides cleaning services to commercial and residential customers.The commercial business segment provided services to 270 customers and the residential business segment provided services to 595 customers. $\begin{array}{lrrr}
& \text { Commercial } & \text { Residential } & \text { Total } \
\text { Service Revenue } & \$ 87,000 & \$ 122,000 & \$ 209,000 \
\text { Variable Costs } & \underline{23,000} & \underline{51,000} & \underline{74,000} \
\text { Contribution Margin } & 64,000 & 71,000 & 135,000 \
\text { Fixed Costs } & \underline{47,000} & \underline{46,000} & \underline{93,000} \
\text { Operating Income } & \$ 17,000 & \$ 25,000 & \$ 42,000
\end{array}$ State which segment has the higher average variable cost per unit and provide the amount of the average variable cost per unit for that segment.(Round the answer to the nearest dollar. )

Question

Briar Company provides cleaning services to commercial and residential customers.The commercial business segment provided services to 270 customers and the residential business segment provided services to 595 customers. $\begin{array}{lrrr} 
& \text { Commercial } & \text { Residential } & \text { Total } \
\text { Service Revenue } & \$ 87,000 & \$ 122,000 & \$ 209,000 \
\text { Variable Costs } & \underline{23,000} & \underline{51,000} & \underline{74,000} \
\text { Contribution Margin } & 64,000 & 71,000 & 135,000 \
\text { Fixed Costs } & \underline{47,000} & \underline{46,000} & \underline{93,000} \
\text { Operating Income } & \$ 17,000 & \$ 25,000 & \$ 42,000
\end{array}$ State which segment has the higher average variable cost per unit and provide the amount of the average variable cost per unit for that segment.(Round the answer to the nearest dollar. )

Quizplus · Accepted Answer

The Answer of Briar Company provides cleaning services to commercial and residential customers.The commercial business segment provided services to 270 customers and the residential business segment provided services to 595 customers. $\begin{array}{lrrr} 
& \text { Commercial } & \text { Residential } & \text { Total } \
\text { Service Revenue } & \$ 87,000 & \$ 122,000 & \$ 209,000 \
\text { Variable Costs } & \underline{23,000} & \underline{51,000} & \underline{74,000} \
\text { Contribution Margin } & 64,000 & 71,000 & 135,000 \
\text { Fixed Costs } & \underline{47,000} & \underline{46,000} & \underline{93,000} \
\text { Operating Income } & \$ 17,000 & \$ 25,000 & \$ 42,000
\end{array}$ State which segment has the higher average variable cost per unit and provide the amount of the average variable cost per unit for that segment.(Round the answer to the nearest dollar. )

Briar Company Provides Cleaning Services to Commercial and Residential Customers