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Problem A Algo Estimating fixed and variable cost LO
Perez Computer Services, Incorporated, has been in business for six months. The following are basic operating data for that period:
MonthJulyAugustSeptemberOctoberNovemberDecemberService hoursRevenue$ $ $ $ $ $ Operating costs$ $ $ $ $ $
Required
What is the average service revenue per hour in each month and the overall average forthe sixmonth period?
Use the highlow method to estimate the total monthly fixed cost and the variable cost per hour.
Determine the average contribution margin per hour.
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