Elegant Affairs, Inc The Total Fixed Costs for the Month Amount to $2,500

Essay

Elegant Affairs, Inc. provides catering services. The company has three segments: Standard, Deluxe, and Premium. The company provides the following data for its three segments for the month of July:
$$\begin{array} { | l | r | r | r | } \hline & { \text { Standard } } & { \text { Deluxe } } &{ \text { Premium } } \\\hline \text { No. of customers } & 30 & 20 & 40 \\\hline \text { Service revenue } & \$ 9,000 & \$ 8,200 & \$ 8,600 \\\hline \text { Variable costs } & \$ 5,500 & \$ 3,800 & \$ 4,200 \\\hline\end{array}$$ The total fixed costs for the month amount to $2,500.
Requirements:
a) Calculate the contribution margin ratio for each business segment.
b) Compute the service revenue per customer, variable cost per customer, and contribution margin per customer for each business segment.