Hermans Helpers provides locksmith services. One type of service call is to evaluate private residences for security

Question:

Herman’s Helpers provides locksmith services. One type of service call is to evaluate private residences for security concerns and make recommendations for a safety plan. Use the data below to determine the company’s total contribution margin, contribution margin per service call, and contribution margin ratio when 50 service calls are made in the month of June.

Service Revenue......... $ 100 per service call

Variable Costs .........35 per service call

Fixed Costs .........2,000 per month

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...