Welcome Services,Inc The Total Fixed Costs for the Month Amounts to $2,500

question 10

Essay

Welcome Services,Inc.provides catering services.The company has three segments: Standard,Deluxe,and Premium.The company provides the following data for its three segments for the month of July:
$\begin{array}{|l|r|r|r|}\hline & \text { Standard } & \text { Deluxe } & \text { Premium } \\\hline \text { No. of customers } & 30 & 20 & 40 \\\hline \text { Service revenue } & \$ 9,000 & \$ 8,200 & \$ 8,600 \\\hline \text { Variable costs } & \$ 5,500 & \$ 3,800 & \$ 4,200 \\\hline\end{array}$ The total fixed costs for the month amounts to $2,500.
Requirements:
a)Calculate the contribution margin ratio for each business segment.
b)Compute the service revenue per customer,variable cost per customer,and contribution margin per customer for each business segment.

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Definitions:

Weak

Describes something that lacks strength, influence, or effectiveness in comparison to what is typical or expected.

Collaborating Style

A cooperative approach to conflict resolution or problem-solving where parties work together to find a mutually beneficial solution.

Cooperative

An organization or attitude marked by the willingness to work together towards a common goal or mutual benefit.

Win-Win Approach

A strategy aimed at solving conflicts by finding solutions that are beneficial to all involved parties, ensuring mutual satisfaction.