Question
Adams Computer Services, Inc. has been in business for six months. The following are basic operating data for that period: Month July Aug. Sept. Oct.
Adams 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 118 132 254 428 324 334 Revenue $ 6,254 $ 6,996 $ 13,462 $ 22,684 $ 17,172 $ 17,702 Operating costs $ 4,230 $ 5,220 $ 7,120 $ 11,200 $ 9,160 $ 10,560 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.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started