Solved

Habitat Help Company Provides Cleaning Services to Commercial and Residential

Question 6

Multiple Choice

Habitat Help Company provides cleaning services to commercial and residential customers.The commercial business segment provided services to 310 customers and the residential business segment provided services to 575 customers.  Commercial  Residential  Total  Service Revenue $91,000$121,000$212,000 Variable Costs 23,00047,00070,000 Fixed Costs 46,00048,00094,000 Operating Income $22,000$26,000$48,000\begin{array} { | l | r | r | r | } \hline & \text { Commercial } & \text { Residential } & { \text { Total } } \\\hline \text { Service Revenue } & \$ 91,000 & \$ 121,000 & \$ 212,000 \\\hline \text { Variable Costs } & 23,000 & 47,000 & 70,000 \\\hline \text { Fixed Costs } & \underline { 46,000 } & \underline { 48,000 } & \underline { 94,000 } \\\hline \text { Operating Income } & \$ 22,000 & \$ 26,000 & \$ 48,000 \\\hline\end{array} What is the contribution margin ratio for Habitat Help Company? (Round answer to two decimal places.)


A) 77.36%
B) 22.64%
C) 66.98%
D) 55.66%

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions