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 200 customers and earned $40,000 in revenue. The variable costs for the corporate and individual business segments amounted to $33,000 and $25,000, 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.) OA. $37.50 OB. $54.00 OC. $39.00 OD. $75.00

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 200 customers and earned $40,000 in revenue. The variable costs for the corporate and individual business segments amounted to $33,000 and $25,000, 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.) OA. $37.50 OB. $54.00 OC. $39.00 OD. $75.00

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

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Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.
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Chou Computer Services provides services to corporate and individual customers. During the month of June, the corporate business segment provided services to 300 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 $32,500 and $25,300, respectively. In addition, the fixed costs of the company amounted to $8000. The contribution margin ratios of the corporate segment and individual segment are ________, respectively. (Round your answers two decimal places.) * A) 78.57% and 16.17% B) 54.17% and 27.71% C) 54.17% and 72.29% D) 45.83% and 27.71%
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