Professional 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 July: (Click the icon to view the income statement.) Read the requirements. Requirement 3. which business segment was most profitable? List some possible reasons why this segment was most profitable. How might the various reasons arrect the company in the long term? The Birman business segment was the most profitable because the variable cost per customer was the lowest. Possible reasons for the profitability of this business segment include the following: (Select all that apply.) A. Higher revenue per customer in the most profitable business segment B. Higher employee wages in the most profitable business segment C. Lower revenue per customer in the most profitable business segment D. Reducing the amount of pool chemicals used in service calls for the most profitable business segment E. Better routes with shorter drive times allowing more customers to be served in the most profitable business segment F. Lengthy routes with longer drive times allowing fewer customers to be served in the most profitable business segment G. Lower employee wages in the most profitable business segment H. Employees in the most profitable business segment cutting corners when performing service calls
Professional 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 July: (Click the icon to view the income statement.) Read the requirements. Requirement 3. which business segment was most profitable? List some possible reasons why this segment was most profitable. How might the various reasons arrect the company in the long term? The Birman business segment was the most profitable because the variable cost per customer was the lowest. Possible reasons for the profitability of this business segment include the following: (Select all that apply.) A. Higher revenue per customer in the most profitable business segment B. Higher employee wages in the most profitable business segment C. Lower revenue per customer in the most profitable business segment D. Reducing the amount of pool chemicals used in service calls for the most profitable business segment E. Better routes with shorter drive times allowing more customers to be served in the most profitable business segment F. Lengthy routes with longer drive times allowing fewer customers to be served in the most profitable business segment G. Lower employee wages in the most profitable business segment H. Employees in the most profitable business segment cutting corners when performing service calls
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Professional 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 July:
(Click the icon to view the income statement.)
Read the requirements.
Requirement 3. which business segment was most profitable? List some possible reasons why this segment was most profitable. How might the various reasons arrect the company
in the long term?
The Birman business segment was the most profitable because the variable cost per customer was the lowest.
Possible reasons for the profitability of this business segment include the following: (Select all that apply.)
A. Higher revenue per customer in the most profitable business segment
B. Higher employee wages in the most profitable business segment
C. Lower revenue per customer in the most profitable business segment
D. Reducing the amount of pool chemicals used in service calls for the most profitable business segment
E. Better routes with shorter drive times allowing more customers to be served in the most profitable business segment
F. Lengthy routes with longer drive times allowing fewer customers to be served in the most profitable business segment
G. Lower employee wages in the most profitable business segment
H. Employees in the most profitable business segment cutting corners when performing service calls
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