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ces Russell Preston delivers parts for several local auto parts stores. He charges clients $0.95 per mile driven. Russell has determined that if he
ces Russell Preston delivers parts for several local auto parts stores. He charges clients $0.95 per mile driven. Russell has determined that if he drives 4,000 miles in a month, his average operating cost is $0.75 per mile. If he drives 6,000 miles in a month, his average operating cost is $0.65 per mile. Russell has used the high-low method to determine that his monthly cost equation is total cost = $800 + $0.45 per mile. Required: 1. Determine how many miles Russell needs to drive to break even 2. Assume Russell drove 1,900 miles last month. Without making any additional calculations, determine whether he earned a profit or a loss last month. 3. Determine how many miles Russell must drive to earn $1,300 in profit 4-a. Prepare a contribution margin income statement assuming Russell drove 1,900 miles last month. 4-b. Use the information provided in Req 4a to calculate Russell's degree of operating leverage Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3: Reg 4A Req 48 Determine how many miles Russell needs to drive to break even. Break Even Miles Mies
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