Stuart Computer Services, Incorporated, has been in business for six months. The following are basic operating data for that period: Month Service hours Revenue Operating costs July 118 $ 7,080 $ 4,260 August 132 $ 7,920 $ 5,230 September 262 $ 15,720 $ 7,168 October 426 $ 25,560 $ 11,160 November 322 $ 19,320 $ 9,100 December 328 $ 19,680 $ 10,560 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.

Stuart Computer Services, Incorporated, has been in business for six months. The following are basic operating data for that period: Month Service hours Revenue Operating costs July 118 $ 7,080 $ 4,260 August 132 $ 7,920 $ 5,230 September 262 $ 15,720 $ 7,168 October 426 $ 25,560 $ 11,160 November 322 $ 19,320 $ 9,100 December 328 $ 19,680 $ 10,560 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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