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

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Answer #1
a
July Aug. Sept. Oct. Nov. Dec. Total Average
Revenue 6726 8024 15222 25252 18526 19234 92984
Divide by Service hours 114 136 258 428 314 326 1576
Average service Revenue per hour 59.00 59.00 59.00 59.00 59.00 59.00 59.00
b
Operating costs Service hours
High level 11140 428
Low level 4240 114
Difference 6900 314
Variable cost 21.97 per hour =6900/314
Fixed cost 1737 or 1735 per month =11140-(428*21.97)
c
Average contribution margin per hour 37.03 =59.00-21.97
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