Answered: Service Revenue 170 per service call…

Business

Accounting

Service Revenue 170 per service call Variable Costs Fixed Costs 68 per service call 21,040 per month

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter13: Budgeting And Standard Costs

Section: Chapter Questions

Problem 13.6.1MBA: Utilization rate Delta Air Lines (DAL) reported the following data (in millions) for three recent...

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

Using variable costing, service company

Henry’s Helpers provides locksmith services. One type of service call is to evaluate private residences for security concerns and make recommendations for Safety plan. Use the data below to determine the company’s total contribution margin, contribution margin per service call, and contribution margin ratio when 220 service calls are made in the month of June.

Service Revenue
170 per service call
Variable Costs
Fixed Costs
68 per service call
21,040 per month

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