Home / Questions / Problem 2-26B Estimating fixed and variable costs Dang Legal Services provides legal advice to...
Problem 2-26B
Estimating fixed and variable costs
Dang Legal Services provides legal advice to clients. The following data apply to the first six months of operation:
Month
Jan. Feb. Mar. Apr. May June
Service hours 80 100 140 180 200 220
Revenue $8,000 $10,000 $14,000 $18,000 $20,000 $22,000
Operating costs 7,400 8,200 9,660 10,600 10,900 11,600
Required
What is the average service revenue per hour for the six-month time period?
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