Burlington Internet Services is an Internet service provider for commercial and residential customers. The company provided the
Question:
Burlington Internet Services is an Internet service provider for commercial and residential customers. The company provided the following data for its two types of customers for the month of August:
For each type of customer, determine both the contribution margin per customer and the contribution margin ratio. Round to two decimal places. Which type of service is more profitable?
Transcribed Image Text:
Number of Customers Service Revenue Variable Costs Contribution Margin Fixed Costs Operating Income Commercial 200 $ 32,000 8,320 23,680 Residential 600 $ 72,000 27,360 44,640 Total 800 $ 104,000 35,680 68,320 53,000 $ 15,320
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Commercial service is more profitable This is indicated by the higher contribution margin p...View the full answer
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Related Book For
Horngrens Financial And Managerial Accounting
ISBN: 9780134486833
6th Edition
Authors: Tracie Miller Nobles, Brenda Mattison, Ella Mae Matsumura
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