Marion Company provides cleaning services to commercial and residential customer
ID: 2534293 • Letter: M
Question
Marion Company provides cleaning services to commercial and residential customers. The commercial business segment provided services to 280 customers and the residential business segment provided services to 595 customers.
???Commercial
????Residential
????????????Total
Service Revenue
?$92,000
????????$121,000
???????
?$213,000
Variable Costs
?31,000
?????????????49,000
???????????
?80,000
Fixed Costs
?45,000
??????????? ?50,000
???????????
?95,000
Operating Income
?$16,000
??????????$22,000
?????????
?$38,000
What is the contribution margin ratio for Marion? Company? ? (Round your answer to two decimal? places.)
Explanation / Answer
Total sales 213000$
Less: VC (80000)$
Contribution 133000$
Less: fixed costs (95000)
Profit 38000
Contribution margin ratio = Contribution/margin*100= 133000/213000*100= 62.44%
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