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

question 88

Essay

Framework Company provides architectural services. The company provides the following financial data:
$$\begin{array} { l l } \text { Service Revenue } & \$ 30,000 \\\text { Salaries and Othe Variable Costs } & 20,350 \\\text { Rent Expense } & 4,500 \\\text { Depreciation Expense } & 500\end{array}$$ 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:

Imports

Goods or services brought into one country from another for sale or use.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choosing between options.

Comparative Advantage

The ability of an individual, firm, or country to produce a certain good or service at a lower opportunity cost than others.

Trade Deficit

The economic condition that arises when a country imports more goods and services than it exports.