te Computer Solutions provides services to corporate and individual customers. During the month of June, the corporate business segment provided services to 300 customers and earned $ 70 comma 000 in revenue. The individual business segment provided services to 200 customers and earned $ 40 comma 000 in revenue. The variable costs for the corporate and individual business segments amounted to $ 32 comma 000 and $ 25 comma 100 , respectively. In addition, the fixed costs of the company amounted to $ 7 comma 500. Calculate the contribution margin from each corporate customer. (Round your answer to the nearest cent.) A. $ 37.00 B. $ 74.50 C. $ 126.67 D. $ 101.67

Question

Business

Angel Lam

9 July, 17:48

te Computer Solutions provides services to corporate and individual customers. During the month of June, the corporate business segment provided services to 300 customers and earned $ 70 comma 000 in revenue. The individual business segment provided services to 200 customers and earned $ 40 comma 000 in revenue. The variable costs for the corporate and individual business segments amounted to $ 32 comma 000 and $ 25 comma 100 , respectively. In addition, the fixed costs of the company amounted to $ 7 comma 500. Calculate the contribution margin from each corporate customer. (Round your answer to the nearest cent.) A. $ 37.00 B. $ 74.50 C. $ 126.67 D. $ 101.67

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Answers (1)

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Terrence Hines · Answer 1

C. $ 126.67

Explanation:

we are asked for corporated customer therefore, the individual business segment data is ignored

The contribution margin is the difference between the sales revenue and the variable cost.

Corporate contribution margin:

70,000 revenue - 32,000 variable cost = contribution margin

contribution margin = 38,000

Then, we divide over the 300 corporate customer to know the contribution per customer:

38,000 / 300 = 126,666666