Chou Computer Services Provides Services to Corporate and Individual Customers

question 101

Multiple Choice

Chou Computer Services provides services to corporate and individual customers.During the month of June,the corporate business segment provided services to 300 customers and earned $60,000 in revenue.The individual business segment provided services to 400 customers and earned $35,000 in revenue.The variable costs for the corporate and individual business segments amounted to $32,500 and $25,300,respectively.In addition,the fixed costs of the company amounted to $8000.The contribution margin ratios of the corporate segment and individual segment are ________,respectively.(Round your answers two decimal places.)

• A)78.57% and 16.17%
• B)54.17% and 27.71%
• C)54.17% and 72.29%
• D)45.83% and 27.71%

---

Definitions:

Work in Process Inventory

Goods that are in the process of being manufactured but are not yet completed.

Direct Labor Hour

A measure of the labor time directly involved in the production of goods, often used in costing and budgeting.

Standard Quantities

Standard quantities refer to the predetermined amounts of material, labor, and overhead that should be used in the production of a good or service, serving as a basis for cost control and efficiency analysis.

Standard Rates

Predetermined costs or charges used for billing, budgeting, or for setting up baseline expectations for financial performance.