Given the below data how would you calculate the marginal cost, marginal revenue, contribution margin %, and other critical ratios/calculations to determine pricing for adding additional customers? Is there missing data needed?
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Get Help Now!Garbage company deciding to pickup additional dumpsters measured by yards. Below is financials on current customers. Need to calculate a price per yard for adding 800 additional yards.
Revenue per yard = $6.66
Disposal per yard (expense) = $1.52
Net revenue per yard = $5.14
Op cost per yard = $2.62
Margin = $2.52
Margin % = 37.9%
Gross revenue = $9,989,548
Gross disposal cost = $2,260,105
Total yards collected = 1,490,243
Cost per driver hour = $151
Cost per route = $32,058
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