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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)?

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Answer:

The average amount charged to each customer is $81.25.

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

= [tex]\frac{Sales\ Revenue}{Number\ of\ Customers}[/tex]

= [tex]\frac{13,000}{160}[/tex]

= $81.25

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