Question: 2. need help understanding Data table Requirements 1. Calculate the contribution margin ratio for each business segment. 2. The business segments had the following numbers






Data table Requirements 1. Calculate the contribution margin ratio for each business segment. 2. The business segments had the following numbers of customers: Benson, 100; Milan, 60; and Farwood, 30. Compute the service revenue per customer variable cost per customer, and contribution margin per customer for each business segment. 3. Which business segment was most profitable? List some possible reasons why this segment was most profitable. How might the various reasons affect the company in the long term? Divine Pool Cleaning Service provides pool cleaning services to residential customers. The company has three employees, each assigned to specific custamers The compan considers each employee's temitory as a business segmont. The company incurs variable costs that include the employees' wages, pool cherricals, and gas for the service va Fixed costs include depreciation on the service vans. Following is the income statement for the month of July: (Click the icon to view the income statement.) Read the Requirement 1. Calculate the contribution margin ratio for each business segment. Requirement 2. The business segmonts had the following numbers of customers: Benson, 100, Milan, 60, and Farwood, 30 . Compute the service revenue per customer, variable cost per customer, and contribution margin per customer for each businoss segment. Requirement 3. Which business segrnent was most profitable? List some possblle reasons why this segment was most profitable: How mght the varibus reasons affect the company in the long term? The business segment was the most proterable because the Possible reasons for the profitabliky of this bubiness segment include the following. (Select all that apply) A. Lower employee wages in the most profitable business segment B. Employees in the most profitable basiness segesent cutting compers when porforming sarvice calls: C. Lengtty routes with longer drive times allowing fower customers to be served in the most profitable business segment D. Reducing the amount of pool chemicals used in service calls for the most profitable business segment L. Better routes with shorter drive times allowing more customers to be served in the most proficable business segrsent F. Lower revenut per customer in the most profiable business segrment G. Higher employee wages in the most profiable business segment H. Higher revenue per customer in the most profitable business segment How might the various reasons affect the company in the long term? The possible side effects of the items identified in the preceding step could be (Select all that apply.) A. dissatisfied customers because of inadequate service. B. less fuel and maintenance costs because of lengthier routes. C. highly compensated employees resulting in an increase in contribution margin. D. increased service costs because of reduced pool chemical usage causing poor water quality and additional service calls. E. increased customer base due to competitive service prices. F. increased employee turnover because of low wages. G. less fuel and maintenance costs because of efficient routes
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
