Question: Ch 2. Ques 1 Thornton Computer Services, Inc. has been in business for six months. The following are basic operating data for that period: Month
Ch 2. Ques 1
Thornton Computer Services, Inc. has been in business for six months. The following are basic operating data for that period:
| Month | ||||||||||||||||||
| July | Aug. | Sept. | Oct. | Nov. | Dec. | |||||||||||||
| Service hours | 120 | 136 | 260 | 420 | 320 | 330 | ||||||||||||
| Revenue | $ | 6,000 | $ | 6,800 | $ | 13,000 | $ | 21,000 | $ | 16,000 | $ | 16,500 | ||||||
| Operating costs | $ | 4,300 | $ | 5,300 | $ | 7,100 | $ | 11,200 | $ | 9,100 | $ | 10,600 | ||||||
Required
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What is the average service revenue per hour in each month and the overall average for the six-month period?
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Use the high-low method to estimate the total monthly fixed cost and the variable cost per hour.
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Determine the average contribution margin per hour.
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