Adventures Company provides event management services.The company has three employees,each assigned to specific customers.The company considers each employee's territory as a business segment.The following data relate to its three segments for the month of June: $$\begin{array} { | l | r | r | r | }
\hline & \text { Francisco } & \text { Liu } & \text { Jordan } \
\hline \text { Sale Revenue } & \$ 8000 & \$ 12,800 & \$ 13,350 \
\hline \text { Variable costs } & \$ 5700 & \$ 5200 & \$ 10,500 \
\hline
\end{array}$$ The business segments had the following number of customers: Francisco,24 ; Liu,28; and Jordan,33.The total fixed costs for the month of June amount to $3400.Which business segment was the most profitable?
A)Francisco
B)Liu
C)Jordan
D)Both Francisco and Liu are equally profitable

Question

Adventures Company provides event management services.The company has three employees,each assigned to specific customers.The company considers each employee's territory as a business segment.The following data relate to its three segments for the month of June: $$\begin{array} { | l | r | r | r | } 
\hline & \text { Francisco } & \text { Liu } & \text { Jordan } \
\hline \text { Sale Revenue } & \$ 8000 & \$ 12,800 & \$ 13,350 \
\hline \text { Variable costs } & \$ 5700 & \$ 5200 & \$ 10,500 \
\hline
\end{array}$$ The business segments had the following number of customers: Francisco,24 ; Liu,28; and Jordan,33.The total fixed costs for the month of June amount to $3400.Which business segment was the most profitable?
A)Francisco
B)Liu
C)Jordan
D)Both Francisco and Liu are equally profitable

Quizplus · Accepted Answer

Liu's segment has the highest contribution margin (Sales Revenue - Variable Costs), which is $7,600, compared to Francisco's $2,300 and Jordan's $2,850.

Adventures Company Provides Event Management Services The Business Segments Had the Following Number of Customers: Francisco,24