Hank\'s Helpers provides locksmith services. One type of service call is to eval

Question

Hank's Helpers provides locksmith services. One type of service call is to evaluate private residences for security concerms and make recommendations for a safety plan. Use the data below to determine the company's total contribution margin, contribution margin per service call, and contribution margin ratio when 160 service calls are made in the month of June (Click the icon to view the data.) Select the formula labels needed to compute the contribution margin. Then, complete the table to calculate the contribution margin per service call, then the company's total contribution margin Per call160 calls t Table -X Contribution Margin Select the formula to calculate the contribution margin ratio Contribution Margin Ratio The contribution margin ratio is Service Revenue S170 pe service call Variable Costs Fixed Costs 34 per service call 20,760 per month Print Done

Explanation / Answer

Contribution Margin Ratio = Contribution Margin / Service Revenue = $21,760 / $27,200 = 0.80 or 80%

The contribution margin ratio is 80%.

Per call 160 calls Service Revenue $170 $27,200 Variable costs $34 $5,440 Contribution Margin $136 $21,760

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