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Ch 2. Ques 1 Thornton Computer Services, Inc. has been in business for six months. The following are basic operating data for that period: Month

Ch 2. Ques 1

Thornton 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 120 136 260 420 320 330
Revenue $ 6,000 $ 6,800 $ 13,000 $ 21,000 $ 16,000 $ 16,500
Operating costs $ 4,300 $ 5,300 $ 7,100 $ 11,200 $ 9,100 $ 10,600

Required

  1. What is the average service revenue per hour in each month and the overall average for the six-month period?

  2. Use the high-low method to estimate the total monthly fixed cost and the variable cost per hour.

  3. Determine the average contribution margin per hour.

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