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value: 0 points Newteh Computer Services, Inc., has been in business for six months. The following are basic operating data for that period. Month July
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Newteh 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 | 138 | 256 | 428 | 320 | 328 | ||||||||||||
Revenue | $ | 6,490 | $ | 7,590 | $ | 14,080 | $ | 23,540 | $ | 17,600 | $ | 18,040 | ||||||
Operating costs | $ | 4,220 | $ | 5,240 | $ | 7,140 | $ | 11,170 | $ | 9,160 | $ | 10,590 | ||||||
Required: |
a. | What is the average service revenue per hour for the six-month time period? (Omit the "$" sign in your response.) |
Month | July | Aug. | Sept. | Oct. | Nov. | Dec. |
Average service revenue per hour | $ | $ | $ | $ | $ | $ |
b. | Use the high-low method to estimate the total monthly fixed cost and the variable cost per hour. (Do not round intermediate calculations. Round your variable cost to 2 decimal places and fixed cost to the nearest dollar amount. Omit the "$" sign in your response.) |
Variable cost | $ | per hour |
Fixed cost | $ | |
c. | Determine the average contribution margin per hour. (Round your answer to 2 decimal places. Omit the "$" sign in your response.) |
Contribution margin per hour | $ |
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