Kane Legal Services provides legal advice to clients. The following data apply to the first six months of operation:

Required
a. What is the average service revenue per hour for the six-month time 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 any differences.

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Month Jan Feb. Mar May June Apr. 180 Service hours Revenue Operating costs 80 8,000 $10,000 $ 7,400 220 $22,000 11,600 100 140 200 14,000 $18,000 $20,000 10,600 8,200 9,660 10,900