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Franklin Computer Services, Inc. has been in business for six months. The following are basic operating data for that period: Month July Aug. Sept. Oct.

Franklin 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 118 134 262 420 322 328
Revenue $ 6,254 $ 7,102 $ 13,886 $ 22,260 $ 17,066 $ 17,384
Operating costs $ 4,260 $ 5,260 $ 7,150 $ 11,100 $ 9,130 $ 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.

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