Requirement $1.$ Calculate the contribution margin ratio for each business segment.

Requirement $2.$ The business segments had the following numbers of customers: Becker, $110$; Mraz, $30$; and

Flounder, $100.$ Compute the service revenue per customer, variable cost per customer, and contribution margin per

customer for each business segment. Data table

$\backslash$table$[[$Eden Pool Cleaning Service Income Statement r the Month Ended July $31,2024],[,$Becker,Mraz,Flounder,Total$],[$Service Revenue,$$,9,900$ $$,2,700$ $$,9,000,$$$,21,600],[$Variable Costs,,$2,970,1,350,3,600,,7,920],[$Contribution Margin,,$6,930,1,350,5,400,,13,680],[$Fixed Costs,,,,,,$6,000],[$Operating Income,,,,,$$,7,680]]$ Requirement $3.$ 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?

The

business segment was the most profitable because the

contribution margin per customer was the lowest.

revenue per customer was the highest.

utting corners when performing service calls

revenue per customer was the lowest.

s segment

variable cost per customer was the highest.

:e calls for the most profitable business segment

is segment

variable cost per customer was the lowest.

$$siness segment

siness segment Possible reasons for the profitability of this business segment include the following: $($Select all that apply.$)$

A$.$ Lengthy routes with longer drive times allowing fewer customers to be served in the most profitable business

segment

B$.$ Employees in the most profitable business segment cutting corners when performing service calls

C$.$ Lower employee wages in the most profitable business segment

D$.$ Reducing the amount of pool chemicals used in service calls for the most profitable business segment

E$.$ Higher employee wages in the most profitable business segment

F$.$ Higher revenue per customer in the most profitable business segment

G$.$ Lower revenue per customer in the most profitable business segment

H$.$ Better routes with shorter drive times allowing more customers to be served 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$.$ less fuel and maintenance costs because of efficient routes.

B$.$ less fuel and maintenance costs because of lengthier routes.

C$.$ increased service costs because of reduced pool chemical usage causing poor water quality and additional

service calls.

D$.$ increased employee turnover because of low wages.

E$.$ highly compensated employees resulting in an increase in contribution margin.

F$.$ increased customer base due to competitive service prices.

G$.$ dissatisfied customers because of inadequate service.