Framework Company Provides Architectural Services Requirements:
A)Calculate the Contribution Margin,contribution Margin Ratio,and Operating Income

question 64

Essay

Framework Company provides architectural services.The company provides the following financial data:
$\begin{array}{ll}\text { Service Revenue } & \$ 30,000 \\\text { Salaries and Other Variable Costs } & 20,350 \\\text { Rent Expense } & 4,500 \\\text { Depreciation Expense } & 500\end{array}$ Requirements:
a)Calculate the contribution margin,contribution margin ratio,and operating income.
b)Framework provided service to 150 customers during the month.Determine the average amount the company charged each customer.

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Definitions:

Workers

Individuals engaged in any form of employment or labor, contributing to the production of goods and services.

Loan

A loan is a sum of money provided by one party to another, under the condition of future repayment with interest, used for personal, business, or financial needs.

Average Total Cost

The total cost of production divided by the number of units produced, representing the per-unit production cost.

Producing Bagels

The process of making bagels, often involving mixing, shaping, boiling, and baking dough in a manner specific to this type of bread.