CH 6 Comprehensive Exercise Saved Help Save & Exit Submit Check my work 1 3 points Russell Preston delivers parts for several local auto parts stores. He charges clients $0.85 per mile driven. Russell has determined that If he drives 2,500 miles in a month, his average operating cost is $0.50 per mile. If he drives 3,500 miles in a month, his average operating cost is $0.40 per mile. Russell has used the high-low method to determine that his monthly cost equation is total cost = $980 + $0.15 per mile. Required: 1. Determine how many miles Russell needs to drive to break even. 2. Assume Russell drove 1,600 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 $1,400 in profit. 4-a. Prepare a contribution margin income statement assuming Russell drove 1,600 miles last month. 4-b. Use the information provided in Req 4a to calculate Russell's degree of operating leverage. eBook References Complete this question by entering your answers in the tabs below. Reg 1 Req 2 Reg 3 Req 4A Req 4B Determine how many miles Russell needs to drive to break even. Break-Even Miles Miles Graw HHI Education Graw Hill Education Prev 1 of 1 Next CH 6 Comprehensive Exercise i Saved Help Save & Exit Submit Check my work 1 Reg 1 Reg 2 Reg 3 Req 4A Req 4B 3 points Prepare a contribution margin income statement assuming Russell drove 1,600 miles last month. RUSSELL PRESTON Contribution Margin Income Statement For Last Month eBook References Contribution Margin Income from Operations Graw HHI Education Prev 1 of 1 III Next CH 6 Comprehensive Exercise i Saved Help Save & Exit Submit 1 Check my work wy operating cost is $0.40 per mile. Russell has used the high-low method to determine that his monthly cost equation is total cost = $980 + $0.15 per mile. 3 points Required: 1. Determine how many miles Russell needs to drive to break even. 2. Assume Russell drove 1,600 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 $1,400 in profit. 4-a. Prepare a contribution margin income statement assuming Russell drove 1,600 miles last month. 4-b. Use the information provided in Req 4a to calculate Russell's degree of operating leverage. eBook References Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Req 4A Req 4B Use the information provided in Req 4a to calculate Russell's degree of operating leverage. (Round your answer to the 2 decimal places.) Degree of Operating Leverage Req 4A Reg 4 Graw HHI Education Prev 1 of 1 III Next