Financial Managerial Accounting: P21-30B Utopia Pool Cleaning Service provides pool cleaning

Financial Managerial Accounting
P21-30B Using variable costing, service company
Utopia Pool Cleaning Service provides pool cleaning services to residential customers. The company has three employees, each assigned to specific customers. The company considers each employee’s territory as a business segment. The company incurs variable costs that include the employees’ wages, pool chemicals, and gas for the service vans. Fixed costs include depreciation on the service vans. Following is the income statement for the month of August: 
Utopia Pool Cleaning Service
Income Statement
For the Month Ended August 31, 2016
Bently Mitz Fanning Total
Service revenue 7,000 4,900 3,500 15,400
Variable costs 4,900 1,470 1,400 7,770
Contribution margin 2,100 3,430 2,100 7,630
Fixed costs 1,500
Operating income $6,130

Requirements 
1. Calculate the contribution margin ratio for each business segment. 
2. The business segments had the following number of customers: Bently, 100; Mitz, 70; and Fanning, 50. Compute the service revenue per customer, variable cost per customer, and contribution margin per customer for each business segment. 
3. Which business segment was most profitable? List some possible reasons why this segment was most profitable. How might the various reasons affect the company in the long term? 
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