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.

---

Definitions:

Market Equilibrium

The state in which the supply and demand for a good or service are balanced, leading to a stable price.

Consumer Surplus

The variance between the total price consumers are ready and able to fork over for a good or service and the sum they ultimately pay.

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is not achievable.

Consumer Surplus

The difference between the total amount that consumers are willing to pay for a good or service and the total amount they actually do pay.