Dean Computer Services Provides Services to Corporate and Individual Customers

question 80

Multiple Choice

Dean 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 $80,000 in revenue.The individual business segment provided services to 200 customers and earned $45,000 in revenue.The variable costs for the corporate and individual business segments amounted to $32,000 and $25,000,respectively.In addition,the fixed costs of the company amounted to $8,500.The contribution margin ratios of the corporate segment and individual segment are ________,respectively.(Round your answers two decimal places. )

• A)106.67% and 25.00%
• B)40.00% and 44.44%
• C)40.00% and 55.56%
• D)60.00% and 44.44%

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Definitions:

Theory of Constraints

A management approach that identifies the most significant limiting factor (constraint) in achieving goals and systematically improves it.

Long-Run Profit

The sustained earning capacity of a company over an extended period, considering both fixed and variable costs.

Non-Value-Added Activity

Processes or tasks that consume resources but do not add value or enhance the product or service from the customer's perspective.

Partly Finished Production

Items or goods that have undergone some stages of the production process but are not yet complete.