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%

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Definitions:

Residual Value

The estimated value of an asset at the end of its useful life, often considered for depreciation purposes.

Depreciation

An accounting method of allocating the cost of a tangible asset over its useful life, representing how much of the asset's value has been used up.

Depletion Expense

The allocation of the cost of natural resources over their useful life, often used in industries like mining, quarrying, or oil extraction.

Mineral Rights

Legal entitlements that grant the holder the ability to mine, extract, or exploit minerals from the land.