Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Stuart Computer Services, Inc. has been in business for six months. The following are basic operating data for that period: Aug Oct. Service hours Revenue

image text in transcribed

Stuart Computer Services, Inc. has been in business for six months. The following are basic operating data for that period: Aug Oct. Service hours Revenue Operating costs July 112 $5,600 $4,220 132 $6,600 $5,240 Month Sept. 258 426 $12,900 $21,300 $ 7,160 $11,120 Nov. 322 $16,100 $ 9, 110 Dec. 330 $16,500 $10,530 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. Complete this question by entering your answers in the tabs below. Required A Required B Required C Use the high-low method to estimate the total monthly fixed cost and the variable cost per hour. (Do not round intermediate calculations. Round "Variable cost" to 2 decimal places and "Fixed cost" to nearest whole dollar.) Variable cost $ 21.97 per hour Fixed cost per month

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Walter Harrison, Wendy Tietz, C. Thomas, Greg Berberich, Catherine Seguin

7th Canadian Edition

0135433061, 9780135433065

More Books

Students also viewed these Accounting questions