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%

Question

Quizplus · Accepted Answer

The contribution margin ratio is calculated as (Revenue - Variable Costs) / Revenue. For the corporate segment: ($60,000 - $32,500) / $60,000 = 45.83%. For the individual segment: ($35,000 - $25,300) / $35,000 = 27.71%.

Chou Computer Services Provides Services to Corporate and Individual Customers