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Bethany Link delivers parts for several local auto parts stores. She charges clients $1.25 per mile driven. She has determined that if she drives
Bethany Link delivers parts for several local auto parts stores. She charges clients $1.25 per mile driven. She has determined that if she drives 1,200 miles in a month, her average operating cost is $1.05 per mile. If Bethany drives 2,400 miles in a month, her average operating cost is $0.70 per mile. Required: 1. Using the high-low method, determine Bethany's variable and fixed operating cost components. 2. Complete the contribution margin income statement for the business last month, when Bethany drove 1,320 miles. (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 Bethany's variable and fixed operating cost components. (Round your cost per unit answer to 2 decimal places.) Variable Cost per Mile Driven Fixed Cost Required 1 Required 2 >>
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