Question

Intricate Computer Solutions provides services to corporate and individual customers. During the month of​ June, the corporate business segment provided services to 400 customers and earned $ 60 comma 000 in revenue. The individual business segment provided services to 300 customers and earned $ 45 comma 000 in revenue. The variable costs for the corporate and individual business segments amounted to $ 33 comma 000 and $ 25 comma 100​, respectively. In​ addition, the fixed costs of the company amounted to $ 7 comma 500. Calculate the contribution margin from each corporate customer.​ (Round your answer to the nearest​ cent.)

Answer 1

Answer:

Corporate = $60,000 - $33,000 = $27,000

Individual = $ 45,000 - $25,100 = $19,900

Explanation:

Contribution margin is the price of a product minus all variable costs of that product, which shows profit that is earned for each unit sold of that product. It shows how much money is left to help pay for other expenses, other than those incurred in the making of the product, that must be paid in order for the business to be able to continue to operate, for example, rent.

The formula for contribution margin is total sales less variable costs.

Contribution margin per unit = selling price per unit less variable costs per unit.

Total contribution = contribution per unit times number of units sold.

For the question we can calculate as follows:

Contribution for corporate = total sales - total variable costs

                                            = $60,000 - $33,000 = $27,000

Contribution for individual = total sales - total variable costs

                                            = $45,000 - $25,000 = $19,900

Answer 2

Answer:

Contribution Margin for each corporate customer= $ 67.5

Explanation:

Intricate Computer Solutions

                          Corporate Business Segment   Individual Business Segment

Revenue.                        $ 60, 000                                        $ 45,000

Variable costs              $ 33, 000                                          $ 25,100​

Contribution Margin       $ 27,000                                              $ 20,000

Less

Fixed costs                    $ 7, 500                                              $ 7, 500      

Operating Income         $19,500                                                $12,500

Contribution Margin for each corporate customer=  Contribution Margin/ No Of Customers  =$ 27000/ 400= $ 67.5