High-Tech Computer Services Provide Services to Corporate and Individual Customers

question 109

Multiple Choice

High-Tech Computer Services provide services to corporate and individual customers.During the month of June,the corporate business segment provided services to 500 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 segment amounted $32,500 and $25,300,respectively.Additionally,the fixed costs of the company amounted to $8,500.Calculate the contribution margin from each customer of the individual business segment.

• A)$55.00
• B)$24.25
• C)$41.34
• D)$13.63

---

Definitions:

Current Year

The ongoing calendar year or fiscal year in which a company or individual is reporting or analyzing financial information.

Debt to Equity Ratio

A measure of a company's financial leverage calculated by dividing its total liabilities by its shareholders' equity.

Total Liabilities

The sum of all financial obligations a company owes to outside parties, including both short-term and long-term debts.

Total Equity

The total net value of a company, calculated as the difference between total assets and total liabilities, representing the ownership interest of the shareholders.