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14 December, 10:51

PC Solutions, Inc. provides services to corporate and individual customers. During the month of June, the corporate business segment provided services to 500 customers and earned $60,000 in revenue. The individual business segment provided services to 400 customers and earned $35,000 in revenue. The variable costs for the corporate and individual business segments amounted to $32,000 and $25,100, respectively. In addition, the fixed costs of the company amounted to $7,500. Calculate the contribution margin from each customer of the individual business segment. (Round your answer to the nearest cent.)

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  1. 14 December, 11:50
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    The contribution margin from each customer of the individual business segment is $24.75

    Explanation:

    Contribution margin from each customer of the individual business:

    Customers = 400

    Revenue = $35000

    Variable cost = $25100

    Total Contribution margin = Revenue - Variable cost

    = $35000 - $25100

    = $9900

    Contribution margin from each customer of the individual business : - = Total Contribution margin/customers

    = $9900/400

    = $24.75

    Therefore, The contribution margin from each customer of the individual business segment is $24.75
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