Healthy Environs Company Provides Cleaning Services for Residential and Commercial

Essay

Healthy Environs Company provides cleaning services for residential and commercial customers. Following are data for the month of June:
$$\begin{array} { | l | r | r | r | } \hline & { \text { Residential } } & { \text { Commercial } } & { \text { Total } } \\\hline \text { Number of customers } & 600 & 400 & 1,000 \\\hline \text { Service revenue } & \$ 48,000 & \$ 40,000 & \$ 88,000 \\\hline \text { Variable costs } & 14,000 & \underline { 22,000 } & \underline { 36,000 } \\\hline \text { Contribution margin } & 34,000 & 18,000 & 52,000 \\\hline \text { Fixed costs } & & & \underline { 41,000 } \\\hline \text { Operating income } & & & \$ 11,000 \\\hline\end{array}$$ For each type of customer, determine both the contribution margin per customer and the contribution margin ratio. Round to two decimal places. Show your computations. What type of service is more profitable?