Question
Bethany Link delivers parts for several local auto parts stores. She charges clients $1.48 per mile driven. She has determined that if she drives 1,300
Bethany Link delivers parts for several local auto parts stores. She charges clients $1.48 per mile driven. She has determined that if she drives 1,300 miles in a month, her average operating cost is $1.28 per mile. If Bethany drives 2,600 miles in a month, her average operating cost is $0.80 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 1,430 miles. (Assume this falls within the relevant range of operations).
- Required 1
Using the high-low method, determine Bethanys variable and fixed operating cost components. (Round your cost per unit answer to 2 decimal places.)
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Complete the contribution margin income statement for the business last month, when Bethany drove 1,430 miles. (Assume this falls within the relevant range of operations). (Round your intermediate calculations to 2 decimal places and final answers to the nearest whole number.)
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