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Stuart Computer Services, Incorporated, has been in business for six months. The following are basic operating data for that period: Month July August September October


Stuart Computer Services, Incorporated, has been in business for six months. The following are basic operating data for that period:

Month

July August September October November December

Service hours 114 132 254 430 320 332

Revenue $ 5,928 $ 6,864 $ 13,208 $ 22,360 $ 16,640 $ 17,264

Operating costs $ 4,300 $ 5,290 $ 7,160 $ 11,140 $ 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.

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