Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

can you help me with these? Joyce Murphy runs a courier service in downtown Seattle. She charges clients $0.46 per mile driven. Joyce has determined

can you help me with these? image text in transcribed
image text in transcribed
image text in transcribed
Joyce Murphy runs a courier service in downtown Seattle. She charges clients $0.46 per mile driven. Joyce has determined that if she drives 3,400 miles in a month her total operating cost is $853. If she drives 5,300 miles in a month, her total operating cost is $1081 Joyce has used the high-low method to determine that her monthly cost equation is total monthly cost = $445 . $0.12 per mile driven Required: 1. Determine how many miles Joyce needs to drive to break even 2. Calculate Joyce's degree of operating leverage if she drives 5,500 miles. 3. Suppose Joyce took a week off and her sales for the month decreased by 26 percent. Using the degree of operating leverage. calculate the effect this will have on her profit for that month. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required) Determine how many miles Joyce needs to drive to break even (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole number) Break Even Unit Miles Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate Joyce's degree of operating leverage if she drives 5,500 miles. (Round your intermediate calcul places and final answer to 4 decimal places.) Degree of Operating Leverage Required 1 Required 2 Required 3 Suppose Joyce took a week off and her sales for the month decreased by 26 percent. Using the degree of operating leverag calculate the effect this will have on her profit for that month. (Round your intermediate calculations and final answer to 4 decimal places. (.e. 123456 should be entered as 12.3456%.)) Effect on Profit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

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

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

a sin(2x) x Let f(x)=2x+1 In(be)

Answered: 1 week ago

Question

Acceptance of the key role of people in this process of adaptation.

Answered: 1 week ago

Question

preference for well defined job functions;

Answered: 1 week ago