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Problem 2-26A (Algo) Estimating fixed and variable cost LO 2-6 Adams Computer Services, Inc. has been in business for six months. The following are basic
Problem 2-26A (Algo) Estimating fixed and variable cost LO 2-6 Adams 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 114 138 256 428 322 324 $5,928 $ 4,300 $22,256 $11,150 $16,744 $ 9,200 $7,176 $5,250 $13,312 $16,848 $10,510 Revenue $ 7,160 Operating costs 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
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