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is this answer correct its two types of customers for the month af August Burtin

ID: 2518493 • Letter: I

Question

is this answer correct

its two types of customers for the month af August Burtingion Intemet Services is an Intemet service provider lor commercial and residential customers. The company provided the folowing data for IClck the icon to view he contibution margin income statement) Which type service is more proftable? For each type ot customer, delermine both the contnbution margin per customer and the contribution margin ratio Round to two decimal places. Contribuson maign Data Table Total conbibut on margnI E per customer 300 123.2 41.8 36960 Total Calcuate the contributon margin ratio 300 Select the formula, then calcufate the conenbution margin ratbo for each business segment (Round to two decimal places- Service Revenue42,000 566,000 108 000 Varlable Costs Contibution Margin Fxed Costs Operaing Income 30.120 77880 61,000 Contrbution margin ratio 25,080 42000 36,960 40 920 weich type service is more promabie? Choose from any ist or enter any nunber in the input fields and then continue to the next question Print Done

Explanation / Answer

Contribution margin per unit :

Contribution margin ratio :

Total contribution margin / No of customer = Contribution margin per customer Commercial 36960 / 300 = 123.20 Residential 40920 / 600 = 68.20