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Homers Helpers provides locksmith services. One type of service calls to evaluate private residences for security concerns a
e table 1 iny s total Data Table - X $ Service Revenue Variable Costs Fixed Costs 180 per service call 90 per service call 11
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Answer #1

Contrubution margin = Sales price - variable cost

  • Contribution margin per call = 180 - 90

= $90

  • Contribution margin for 140 calls = 140 * $90

= $12,600

  • Contribution margin ratio = contribution/sales * 100

= 12600/(140*$180) *100

= 12600/25200 * 100

= 0.5 * 100

= 50%

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