Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bethany Llang dellvers parts for several local auto parts stores. She charges cllents $ 2 . 2 9 per mile driven. She has determined that

Bethany Llang dellvers parts for several local auto parts stores. She charges cllents $2.29 per mile driven. She has determined that if
she drives 1,600 miles in a month, her average operating cost is $2.09 per mile. If Bethany drives 3,200 miles in a month, her average
operating cost is $1,10 per mile.
Required:
Using the high-low method, determine Bethany's variable and fixed operating cost components.
Complete the contribution margin income statement for the business last month, when Bethany drove 1,760 miles. (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 Bethany'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
Complete the contribution margin income statement for the business last month, when Bethany drove 1,760 miles. (Assume
this falls within the relevant range of operations).
Note: Round your intermediate calculations to 2 decimal places and final answers to the nearest whole number.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions