Finch 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 114 140 258 422 322 332 Revenue $ 6,612 $ 8,120 $ 14,964 $ 24,476 $ 18,676 $ 19,256 Operating costs $ 4,220 $ 5,240 $ 7,190 $ 11,180 $ 9,200 $ 10,530 Required What is the average service revenue per hour in each month and the overall average for the six-month period? Use the high-low method to estimate the total monthly fixed cost and the variable cost per hour. Determine the average contribution margin per hour.
Finch 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 114 140 258 422 322 332 Revenue $ 6,612 $ 8,120 $ 14,964 $ 24,476 $ 18,676 $ 19,256 Operating costs $ 4,220 $ 5,240 $ 7,190 $ 11,180 $ 9,200 $ 10,530 Required What is the average service revenue per hour in each month and the overall average for the six-month period? Use the high-low method to estimate the total monthly fixed cost and the variable cost per hour. Determine the average contribution margin per hour.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Finch 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 | 114 | 140 | 258 | 422 | 322 | 332 | ||||||||||||
| Revenue | $ | 6,612 | $ | 8,120 | $ | 14,964 | $ | 24,476 | $ | 18,676 | $ | 19,256 | ||||||
| Operating costs | $ | 4,220 | $ | 5,240 | $ | 7,190 | $ | 11,180 | $ | 9,200 | $ | 10,530 | ||||||
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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