Habitat Help Company Provides Cleaning Services to Commercial and Residential

question 102

Multiple Choice

Habitat Help Company provides cleaning services to commercial and residential customers. The commercial business segment provided services to 310 customers and the residential business segment provided services to 575 customers. $$\begin{array} { | l | r | r | r | } \hline & \text { Commercial } & \text { Residential } & { \text { Total } } \\\hline \text { Service Revenue } & \$ 91,000 & \$ 121,000 & \$ 212,000 \\\hline \text { Variable Costs } & 23,000 & 47,000 & 70,000 \\\hline \text { Fixed Costs } & \underline { 46,000 } & \underline { 48,000 } & \underline { 94,000 } \\\hline \text { Operating Income } & \$ 22,000 & \$ 26,000 & \$ 48,000 \\\hline\end{array}$$ What is the contribution margin ratio for Habitat Help Company? (Round answer to two decimal places.)

• A) 77.36%
• B) 22.64%
• C) 66.98%
• D) 55.66%

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Definitions:

Parks

Designated public spaces that are set aside primarily for recreational, aesthetic, or environmental purposes, often featuring natural or landscaped areas.

Future Generations

The people who will live at a later time, for whom current generations have a responsibility to leave a sustainable environment.

Maintained

Kept in a specified state or condition.

Sagebrush Rebellion

A movement primarily in the Western United States advocating for more state and local control over federal land policies and management.