Newteh Computer Services, Inc., has been in business for six months. The followi

Question

Newteh Computer Services, Inc., has been in business for six months. The following are basic operating data for that period.

What is the average service revenue per hour for the six-month time period? (Omit the "$" sign in your response.)

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.)

Newteh Computer Services, Inc., has been in business for six months. The following are basic operating data for that period.

Explanation / Answer

Month July Aug Sep Oct Nov Dec Service hours (b) 118 138 256 428 320 328 Service Revenue       6,490       7,590       14,080       23,540       17,600       18,040 Average Service Reveue per hour 55 55 55 55 55 55 Operating cost (d)       4,220       5,240        7,140       11,170        9,160       10,590 Computation of variable cost per hour = (11170-4220) / (428-118) (a) 22.41935 Total Variable cost c =(a*b) 2645.484 3093.871 5739.3548 9595.4839 7174.1935 7353.5484 Fixed cost (d-c)       1,575       2,146        1,401        1,575        1,986        3,236 Average Contribution per hour = 55 -22.41935 32.58065

Related Questions

Navigate

• Browse (All)
• Browse N
• Subjects

---