Question

Smith Taxi Service had the following information for the 160 customers served this month: Sales Revenue $13,000 Variable Costs 7,000 Contribution Margin $6,000 What is the average amount charged to each customer (to nearest cent)?

Answer 1

The average amount charged to each customer is $81.25.

Step-by-step explanation:

The sales revenue is given at $13,000.

The variable cost is $7,000.

The contribution margin is $6,000.

The number of customers is 160.

The average amount charged to each customer

=
`(Sales\ Revenue)/(Number\ of\ Customers)`

=
`(13,000)/(160)`

= $81.25