10) Healthy Environs Company provides cleaning services for residential and commercial customers. Following are data...
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Accounting
10) Healthy Environs Company provides cleaning services for residential and commercial customers. Following are data for the month of June:
Residential
Commercial
Total
Number of customers
600
400
1,000
Service revenue
$ 48,000
$ 40,000
$88,000
Variable costs
14,000
22,000
36,000
Contribution margin
34,000
18,000
52,000
Fixed costs
41,000
Operating income
$11,000
For each type of customer, determine both the contribution margin per customer and the contribution margin ratio. What type of service is more profitable?
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