Best Internet Services is an Internet service provider for commercial and residential customers. The company provided the
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For each type of customer, determine both the contribution margin per customer and the contribution margin ratio. Round to two decimal places. Which type service is moreprofitable?
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Commercial Residential Total Number of Customers Service Revenue Variable Costs Contribution Margin Fixed Costs Operating Income 1,300 48,000 98,000 32,500 65,500 54,000 $11,500 800 500 $ 50,000 12,500 37,500 20,000 28,000
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Business Segment Total contribution margin Number of customers CM per customer Commercial 37...View the full answer
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Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133255584
4th Edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
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