vous poor cle services hers. The company has three employees, each assigned chemicals, and gas for the service vans. 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 requirements. Requirement 1. Calculate the contribution margin ratio for each business segment. Contribution margin ratio Brandi Myfred Fanning Service revenue Requirement 2. The business segments had the following numbers of customers: Brandi, 40; Myfred, 80; and Fanning, 70. Compute the service revenue per customer, variable cost per customer, and contribution margin per customer Variable costs per per customer customer per customer Contribution margin Brandi Myfred Fanning 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? business segment was the most profitable because the The ▼ Possible reasons for the profitability of this business segment include the following: (Select all that apply.) A. Lower revenue per customer in the most profitable business segment B. Lengthy routes with longer drive times allowing fewer customers to be served in the most profitable business segment C. Reducing the amount of pool chemicals used in service calls for the most profitable business segment DD. Lower employee wages in the most profitable business segment DE. Higher revenue per customer in the most profitable business segment OF. Better routes with shorter drive times allowing more customers to be served in the most profitable business segment □G. Employees in the most profitable business segment cutting corners when performing service calls OH. Higher employee wages 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. Increased employee turnover because of low wages. B. highly compensated employees resulting in an increase in contribution margin. customers. The company considers each employees teritory C. less fuel and maintenance costs because of lengthier routes. D. dissatisfied customers because of inadequate service. E. less fuel and maintenance costs because of efficient routes. OF. increased service costs because of reduced pool chemical usage causing poor water quality and additional service calls. G. increased customer base due to competitive service prices. business segment. The company incurs variable costs that include the employees wages, poo each business segment. Data table Service Revenue Promise Land Pool Cleaning Service Income Statement For the Month Ended July 31, 2024 Brandi Myfred Fanning Variable Costs Contribution Margin Fixed Costs Operating Income $ 4,400 $ 1,760 2,640 Print 8,800 $ 2,640 6,160 Done Total 7,700 $ 20,900 3,850 8,250 3,850 12,650 4,500 $ 8,150

vous poor cle services hers. The company has three employees, each assigned chemicals, and gas for the service vans. 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 requirements. Requirement 1. Calculate the contribution margin ratio for each business segment. Contribution margin ratio Brandi Myfred Fanning Service revenue Requirement 2. The business segments had the following numbers of customers: Brandi, 40; Myfred, 80; and Fanning, 70. Compute the service revenue per customer, variable cost per customer, and contribution margin per customer Variable costs per per customer customer per customer Contribution margin Brandi Myfred Fanning 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? business segment was the most profitable because the The ▼ Possible reasons for the profitability of this business segment include the following: (Select all that apply.) A. Lower revenue per customer in the most profitable business segment B. Lengthy routes with longer drive times allowing fewer customers to be served in the most profitable business segment C. Reducing the amount of pool chemicals used in service calls for the most profitable business segment DD. Lower employee wages in the most profitable business segment DE. Higher revenue per customer in the most profitable business segment OF. Better routes with shorter drive times allowing more customers to be served in the most profitable business segment □G. Employees in the most profitable business segment cutting corners when performing service calls OH. Higher employee wages 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. Increased employee turnover because of low wages. B. highly compensated employees resulting in an increase in contribution margin. customers. The company considers each employees teritory C. less fuel and maintenance costs because of lengthier routes. D. dissatisfied customers because of inadequate service. E. less fuel and maintenance costs because of efficient routes. OF. increased service costs because of reduced pool chemical usage causing poor water quality and additional service calls. G. increased customer base due to competitive service prices. business segment. The company incurs variable costs that include the employees wages, poo each business segment. Data table Service Revenue Promise Land Pool Cleaning Service Income Statement For the Month Ended July 31, 2024 Brandi Myfred Fanning Variable Costs Contribution Margin Fixed Costs Operating Income $ 4,400 $ 1,760 2,640 Print 8,800 $ 2,640 6,160 Done Total 7,700 $ 20,900 3,850 8,250 3,850 12,650 4,500 $ 8,150

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter4: Accounting For Factory Overhead

Section: Chapter Questions

Problem 8E: A manufacturing company has two service and two production departments. Building Maintenance and...

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