LO 2-6 Problem 2-26A Estimating fixed and variable cost Thornton Computer Services, Inc. has been...
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LO 2-6 Problem 2-26A Estimating fixed and variable cost Thornton Computer Services, Inc. has been in business for six months. The following are basic operating data for that period CHECK FIGURE b. FC = $1,540 Month Aug Sept. Oct. Nov Dec. 120 136 260 420 320 330 Service hours Revenue Operating costs $6,000 $6,800 $13,000 $21,000 $16,000 $16,500 $7,100 $11,200 $4,300 $5,300 $9,100 $10,600 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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