Question - Walton 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 116 138 260 426 314 324 Revenue $ 6,380 $ 7,590 $ 14,300 $ 23,430 $ 17,270 $ 17,820 Operating costs $ 4,280 $ 5,200 $ 7,110 $ 11,180 $ 9,180 $ 10,590
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.