Question: Grant Computer Services, Inc., has been in business for six months. The following are basic operating data for that period Required a. What is the

Grant Computer Services, Inc., has been in business for six months. The following are basic operating data for that period

Required
a. What is the average service revenue per hour in each month and the overall average for the six-month period?
b. Use the high-low method to estimate the total monthly fixed cost and the variable cost per hour.
c. Determine the average contribution margin per hour.
d. Use the scattergraph method to estimate the total monthly fixed cost and the variable cost per hour.
e. Compare the results of the two methods and comment on thedifference.

Month July Aug. Sept. Oct.NovDec. 420 320 330 Service hours120 136 260 Revenue Operating costs $4,300 $5,300 7,100 $11,200 9,100 $10,600 $6,000 $6,800 $13,000 $21,000 $16,000 $16,500

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a Month Jul Aug Sep Oct Nov Dec Total Revenue 6000 6800 13000 21000 16000 16500 79300 Service hours ... View full answer

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