Bethany Liang delivers parts for several local auto parts stores. She charges clients $2.45 per mile driven. She has determined that if she drives 2,000 miles in a month, her average operating cost is $2.25 per mile. If Bethany drives 4,000 miles in a month, her average operating cost is $1.50 per mile.

Required:

1. Using the high-low method, determine Bethanys variable and fixed operating cost components.
2. Complete the contribution margin income statement for the business last month, when Bethany drove 2,200 miles. (Assume this falls within the relevant range of operations).

• Required 1
• Required 2

Using the high-low method, determine Bethanys variable and fixed operating cost components. Note: Round your cost per mile answer to 2 decimal places.

Variable cost per mile driven
Fixed cost