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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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