Connections Company Provides Cleaning Services to Commercial and Residential Customers

Multiple Choice

Connections Company provides cleaning services to commercial and residential customers.The commercial business segment provided services to 270 customers and the residential business segment provided services to 665 customers. $$\begin{array} { | l | r | r | r | } \hline & \text { Commercial } & \text { Residential } & \text { Total } \\\hline \text { Service Revenue } & \$ 94,000 & \$ 116,000 & \$ 210,000 \\\hline \text { Variable Costs } & 31,000 & 52,000 & 83,000 \\\hline \text { Fixed Costs } & \underline { 37,000 } & \underline { 52,000 } & \underline { 89,000 } \\\hline \text { Operating Income } & \$ 26,000 & \$ 12,000 & \$ 38,000 \\\hline\end{array}$$ Identify the segment with the lower contribution margin ratio and show the amount of its contribution margin ratio.(Round your answer to two decimals. )

A) Residential,55.17%
B) Commercial,40.60%
C) Residential,44.83%
D) Commercial,27.66%