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Determine the average contribution margin per hour

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Thornton 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           120           136              260             420              320                      330

Revenue             $6,000         $6,800            $13,000       $21,000         $16,000              $16,500

Operating costs    $4,300          $5,300            $7,100           $11,200       $9,100               $10,600

Required

Question 1: What is the average service revenue per hour in each month and the overall average for the six-month period?

Question 2: Use the high-low method to estimate the total monthly fixed cost and the variable cost per hour.

Question 3: Determine the average contribution margin per hour.

Reference no: EM132500281

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