Welcome Services,Inc The Total Fixed Costs for the Month Amounts to $2,500

Essay

Welcome Services,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 amounts 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.