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

Thornton Computer Services, Inc. has been in business for six months. The

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

1 Expert Approved Answer
Step: 1 Unlock

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... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!