Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

Thornton Computer Services, Inc. has been in business for six months. The following are basic operating data for that period: Month Service hours Revenue

image text in transcribed

Thornton Computer Services, Inc. has been in business for six months. The following are basic operating data for that period: Month Service hours Revenue Operating costs July Aug. 120 136 $6,000 $6,800 $4,300 $5,300 Sept. Oct. Nov. Dec. 260 $13,000 $ 7,100 420 $21,000 $11,200 320 330 $16,000 $16,500 $ 9,100 $10,600 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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Sure lets break down the question step by step a Average Service Revenue per Hour We need to calculate the average service revenue per hour for each m... blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting

Authors: Carl warren, James Reeve, Jonathen Duchac, Sheila Elworthy,

Volume 1, 2nd canadian Edition

176509739, 978-0176509736, 978-0176509743

More Books

Students also viewed these Accounting questions