Question
Thornton Computer Services, Inc. has been in business for six months. The following are basic operating data for that period: MonthJulyAug.Sept.Oct.Nov.Dec.Service hours120136260420320330Revenue$6,000$6,800$13,000$21,000$16,000$16,500Operating costs$4,300$5,300$7,100$11,200$9,100$10,600 Required What
Thornton Computer Services, Inc. has been in business for six months. The following are basic operating data for that period:
MonthJulyAug.Sept.Oct.Nov.Dec.Service hours120136260420320330Revenue$6,000$6,800$13,000$21,000$16,000$16,500Operating costs$4,300$5,300$7,100$11,200$9,100$10,600
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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Advanced Accounting
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
14th Edition
1260247821, 978-1260247824
