P$-$M:$6-36$B$.$ Using variable costing, service company $($Learning

Objective $4)$

Divine Pool Cleaning Service provides pool cleaning services to

residential customers. The company has three employees, each assigned

to specific customers. The company considers each employee's territory

as a business segment. The company incurs variable costs that include

the employees' wages, pool chemicals, and gas for the service vans. Fixec

costs include depreciation on the service vans. Following is the income

statement for the month of August:

DIVINE POOL CLEANING SERVICE

Income Statement

For the Month Ended August $31,2024$

Requirements

Calculate the contribution margin ratio for each business segment.

CMR Moore $70\%$

The business segments had the following number of customers:

Byson, $80$; Moore, $50$; and Freeman, $110.$ Compute the service revenue

per customer, variable cost per customer, and contribution margin per

customer for each business segment.

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?