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.)

Question

Business

Demetrius Wiggins

1 May, 05:23

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.)

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Cooley · Answer 1

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