Anita Kaur runs a courier service in downtown Seattle. She charges clients $$0\mathrm{.}60$ per mile driven. Anita has determined that if she drives $2,850$ miles in a month, her total operating cost is $$925.$ If she drives $3,950$ miles in a month, her total operating cost is $$1,145.$

Required:

Using the high$-$low method, determine Anita's variable and fixed operating cost components.

Complete the contribution margin income statement for Anita's service assuming she drove $2,050$ miles last month. $($Assume this falls within the relevant range of operations$).$

Complete this question by entering your answers in the tabs below.

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