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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.

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Stuart Computer Services, Incorporated, has been in business for six months. The following are basic operating data for that period: Service hours Revenue Operating costs July 118 $ 7,080 $ 4,260 August 132 $ 7,920 $ 5,230 Variable cost Fixed cost Month per hour per month September 262 $ 15,720 $ 7,160 Complete this question by entering your answers in the tabs below. October 426 $ 25,560 $ 11,160 < Required A 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. November Required A Required B Required C Use the high-low method to estimate the total monthly fixed cost and the variable cost per hour. Note: Do not round intermediate calculations. Round "Variable cost" to 2 decimal places and "Fixed cost" to nearest whole dollar. 322 $ 19,320 $ 9,100 Required C > December 328 $ 19,680 $ 10,560
Transcribed Image Text:Stuart Computer Services, Incorporated, has been in business for six months. The following are basic operating data for that period: Service hours Revenue Operating costs July 118 $ 7,080 $ 4,260 August 132 $ 7,920 $ 5,230 Variable cost Fixed cost Month per hour per month September 262 $ 15,720 $ 7,160 Complete this question by entering your answers in the tabs below. October 426 $ 25,560 $ 11,160 < Required A 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. November Required A Required B Required C Use the high-low method to estimate the total monthly fixed cost and the variable cost per hour. Note: Do not round intermediate calculations. Round "Variable cost" to 2 decimal places and "Fixed cost" to nearest whole dollar. 322 $ 19,320 $ 9,100 Required C > December 328 $ 19,680 $ 10,560
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