Question

PC​ Solutions, Inc. provides services to corporate and individual customers. During the month of​ June, the corporate business segment provided services to 500 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​ $32,000 and​ $25,100, respectively. In​ addition, the fixed costs of the company amounted to​ $7,500. Calculate the contribution margin from each customer of the individual business segment.​ (Round your answer to the nearest​ cent.)

Answer 1

Answer:

The contribution margin from each customer of the individual business segment is $24.75

Explanation:

Contribution margin from each customer of the individual business:

Customers = 400

Revenue = $35000

Variable cost = $25100

Total Contribution margin = Revenue – Variable cost

                                            = $35000 - $25100

                                            = $9900

Contribution margin from each customer of the individual business :-   = Total Contribution margin/customers

= $9900/400

= $24.75

Therefore, The contribution margin from each customer of the individual business segment is $24.75