Question

question 47

provide correct answer please

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 $80,000 in revenue. The individual business segment provided services to 200 customers and earned $35,000 in revenue. The variable costs for the corporate and individual business segments amounted to $32,000 and $25,300, respectively. In addition, the fixed costs of the company amounted to $8,000. The contribution margin ratios of the corporate segment and individual segment are respectively. (Round your answers two decimal places.) A. 60% and 27.71% O B. 40% and 27.71% C. 40% and 72.29% OD. 137.14% and 12.13%

Answer 1

Answer

Contribution margin ratio

= (contribution margin / sales) × 100

Contribution margin = sales - variable cost

Corporate business segment revenue = $80,000

Corporate business segment variable cost = $32,000

Corporate business segment contribution margin

= 80,000 - 32,000 = $48,000

Corporate business segment contribution margin ratio

= (48,000 / 80,000) × 100 = 60%

Individual business segment revenue = $35,000

Individual business segment variable cost = 25,300

Individual business segment contribution margin

= 35,000 - 25,300 = $9,700

Individual business segment contribution margin ratio

= (9,700 / 35,000) × 100 = 27.71%

The contribution margin ratio of corporate business segment is 60% and individual business segment is 27.71%.

Option A 60% and 27.71% is correct.

The above calculations and equations clearly indicate that other options are incorrect.

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