Adventures Company provides event management services. The company has three employees, each assigned to specific customers. The company considers each employee's territory as a business segment. The following data relate to its three segments for the month of June: Francisco Liu Jordan Sale Revenue $ 8 comma 000 $ 10 comma 800 $ 13 comma 350 Variable costs $ 5 comma 900 $ 5 comma 200 $ 10 comma 500 The business segments had the following number of customers: Francisco, 24 ; Liu, 28 ; and Jordan, 33. The total fixed costs for the month of June amount to $ 3 comma 300. Which business segment was the most profitable? A. Liu B. Both Francisco and Liu are equally profitable C. Francisco D. Jordan

Question

Business

Carolyn May

20 September, 15:46

Adventures Company provides event management services. The company has three employees, each assigned to specific customers. The company considers each employee's territory as a business segment. The following data relate to its three segments for the month of June: Francisco Liu Jordan Sale Revenue $ 8 comma 000 $ 10 comma 800 $ 13 comma 350 Variable costs $ 5 comma 900 $ 5 comma 200 $ 10 comma 500 The business segments had the following number of customers: Francisco, 24 ; Liu, 28 ; and Jordan, 33. The total fixed costs for the month of June amount to $ 3 comma 300. Which business segment was the most profitable? A. Liu B. Both Francisco and Liu are equally profitable C. Francisco D. Jordan

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Answers (1)

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Atkinson · Answer 1

A. Liu

Explanation:

Francisco Liu Jordan

Sale Revenue $ 8, 000 $ 10,800 $ 13, 350

Variable costs $ 5, 900 $ 5, 200 $ 10,500

Fixed Costs $ 11,00 $ 11,00 $ 11,00

Net Profit 1000 4,500 1,750

A. Liu business segment is most profitable having a Profit of $ 4,500

Jordan business segment is better than Francisco business segment but not as profitable as Liu.

Francisco business segment is least profitable of all.