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Marion Company Provides Cleaning Services to Commercial and Residential Customers

Question 131

Multiple Choice

Marion Company provides cleaning services to commercial and residential customers.The commercial business segment provided services to 280 customers and the residential business segment provided services to 595 customers.  Commercial  Residential  Total  Service Revenue $92,000$121,000$213,000 Variable Costs 31,00049,00080,000 Fixed Costs 45,00050,00095,000 Operating Income $16,000$22,000$38,000\begin{array} { | l | r | r | r | } \hline & \text { Commercial } & \text { Residential } & \text { Total } \\\hline \text { Service Revenue } & \$ 92,000 & \$ 121,000 & \$ 213,000 \\\hline \text { Variable Costs } & 31,000 & 49,000 & 80,000 \\\hline \text { Fixed Costs } & \underline { 45,000 } & \underline { 50,000 } & \underline { 95,000 } \\\hline \text { Operating Income } & \$ 16,000 & \$ 22,000 & \$ 38,000 \\\hline\end{array} What is the contribution margin ratio for Marion Company? (Round you answer to two decimal places. )


A) 0.55%
B) 0.82%
C) 0.62%
D) 0.18%

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