Anita Kaur runs a courier service in downtown Seattle. She charges clients $0.62 per mile driven....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Anita Kaur runs a courier service in downtown Seattle. She charges clients $0.62 per mile driven. Anita has determined that if she drives 2,900 miles in a month, her total operating cost is $950. If she drives 4,000 miles in a month, her total operating cost is $1,192. Required: 1. Using the high-low method, determine Anita's variable and fixed operating cost components. 2. Complete the contribution margin income statement for Anita's service assuming she drove 2,100 miles last month. (Assume this falls within the relevant range of operations). Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using the high-low method, determine Anita's variable and fixed operating cost components. Note: Round your cost per mile answer to 2 decimal places. Variable Cost per Mile Driven Fixed Cost Anita Kaur runs a courier service in downtown Seattle. She charges clients $0.62 per mile driven. Anita has determined that if she drives 2,900 miles in a month, her total operating cost is $950. If she drives 4,000 miles in a month, her total operating cost is $1,192. Required: 1. Using the high-low method, determine Anita's variable and fixed operating cost components. 2. Complete the contribution margin income statement for Anita's service assuming she drove 2,100 miles last month. (Assume this falls within the relevant range of operations). Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using the high-low method, determine Anita's variable and fixed operating cost components. Note: Round your cost per mile answer to 2 decimal places. Variable Cost per Mile Driven Fixed Cost
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
When we observe interest rates in the financial press, do we see nominal or real rates? Which are more relevant to investors?
-
Follow the instructions in the NET @ssets box at the beginning of Section 14.1 for accessing and using the Loan Amortization Chart in this textbooks Web site. Use this chart and its associated report...
-
Construct a balanced scorecard
-
Consider the following condensed financial statements of Secure Life, Inc. The company's target rate of return is 12% and its WACC is 9%: Requirements 1. Calculate the company's profit margin....
-
Going over a course Review for Federal Real Property Lease Law and want to get a double check and see if i come up with the same answer: (Thank you in advance as this online learning experience was...
-
Wedding Planners Limited (WP), owned by Anne and Francois Tremblay, provides wedding planning and related services. WP owns a building (the Pavilion) that has been custom-made for hosting weddings....
-
Calculate the requested derivative from the given information. 3 Given f(u) = and g(x) = u = 1 + 2x, find (f o g)'(0). 0-2 02 3, 2/3 0 0
-
How can IMC help a company improve its brand equity, customer loyalty, and competitive advantage in the market? What are some examples of successful IMC campaigns that have helped companies achieve...
-
What are the traditional approaches that managers use to combat inflation within the article? Discuss the disadvantages of each....
-
As natural resource managers or landowners we can manipulate forest vegetation to create the appropriate desired wildlife habitat conditions by employing?
-
Explain how managers and leaders can promote positive social change from within their roles in diverse organizations. What are the aspects of a diverse organization that might benefit a manager...
-
How do I discuss at least two hazardsand patient safety concernsassociatedwith the major risk categories in a practice?Explain
-
Microsoft Corporation is considering investing in a new gaming console project. The company is evaluating three options: Option A: Invest $1 billion in developing a new gaming console. Option B:...
-
Do unions interfere with the right to property as libertarians believe? Assess the idea that Jobs are the property of employees. What are its implications?
-
Today unions represent a smaller percentage of the wOO
-
What is the connection between the hedonistic model and neocl <15Sical economics?
Study smarter with the SolutionInn App