Chapter 6 Assignment i Saved Russell Preston delivers parts for several local auto parts stores. He charges clients $1.20 per mile driven. Russell has determined that if he drives 3,800 miles in a month, his average operating cost is $0.85 per mile. If he drives 5,800 miles in a month, his average operating cost is $0.75 per mile. Russell has used the high-low method to determine that his monthly cost equation is total cost = $1,600 + $0.56 per mile. 10 points Required: 1. Determine how many miles Russell needs to drive to break even. 2. Assume Russell drove 3,000 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 $2,000 in profit. 4-a. Prepare a contribution margin income statement assuming Russell drove 3,000 miles last month. 4-b. Use the information provided in Req 4a to calculate Russell's degree of operating leverage. eBook Print Complete this question by entering your answers in the tabs below. References Req 1 Req 2 Req3 Req 4A Req 4B Determine how many miles Russell needs to drive to break even. Break-Even Miles Miles Req 1 Req 2 > Chapter 6 Assignment i Saved Russell Preston delivers parts for several local auto parts stores. He charges clients $1.20 per mile driven. Russell has determined that if he drives 3,800 miles in a month, his average operating cost is $0.85 per mile. If he drives 5,800 miles in a month, his average operating cost is $0.75 per mile. Russell has used the high-low method to determine that his monthly cost equation is total cost = $1,600 + $0.56 per mile. 10 points Required: 1. Determine how many miles Russell needs to drive to break even. 2. Assume Russell drove 3,000 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 $2,000 in profit. 4-a. Prepare a contribution margin income statement assuming Russell drove 3,000 miles last month. 4-b. Use the information provided in Req 4a to calculate Russell's degree of operating leverage. eBook Print Complete this question by entering your answers in the tabs below. References Req 1 Req 2 Req3 Req 4A Req 4B Assume Russell drove 3,000 miles last month. Without making any additional calculations, determine whether he earned a profit or a loss last month. O Profit Loss Chapter 6 Assignment i Saved Russell Preston delivers parts for several local auto parts stores. He charges clients $1.20 per mile driven. Russell has determined that if he drives 3,800 miles in a month, his average operating cost is $0.85 per mile. If he drives 5,800 miles in a month, his average operating cost is $0.75 per mile. Russell has used the high-low method to determine that his monthly cost equation is total cost = $1,600 + $0.56 per mile. 10 points Required: 1. Determine how many miles Russell needs to drive to break even. 2. Assume Russell drove 3,000 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 $2,000 in profit. 4-a. Prepare a contribution margin income statement assuming Russell drove 3,000 miles last month. 4-b. Use the information provided in Req 4a to calculate Russell's degree of operating leverage. eBook Print Complete this question by entering your answers in the tabs below. References Req 1 Req 2 Req 2 Req 3 Req 3 Req 4A Req 4A Req 4B Req 48 Determine how many miles Russell must drive to earn $2,000.00 in profit. Target Miles Miles Chapter 6 Assignment i Saved 15 Russell Preston delivers parts for several local auto parts stores. He charges clients $1.20 per mile driven. Russell has determined that if he drives 3,800 miles in a month, his average operating cost is $0.85 per mile. If he drives 5,800 miles in a month, his average operating cost is $0.75 per mile. Russell has used the high-low method to determine that his monthly cost equation is total cost = $1,600 + $0.56 per mile. 10 points eBook Required: 1. Determine how many miles Russell needs to drive to break even. 2. Assume Russell drove 3,000 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 $2,000 in profit. 4-a. Prepare a contribution margin income statement assuming Russell drove 3,000 miles last month. 4-b. Use the information provided in Req 4a to calculate Russell's degree of operating leverage. Print Complete this question by entering your answers in the tabs below. References Req 1 Req Reqz Reg 2 Req3 Req3 Req 4A Regan | Reg AB Req 4B Prepare a contribution margin income statement assuming Russell drove 3,000 miles last month. RUSSELL PRESTON Contribution Margin Income Statement For Last Month Contribution Margin Income from Operations Chapter 6 Assignment i Saved 15 Russell Preston delivers parts for several local auto parts stores. He charges clients $1.20 per mile driven. Russell has determined that if he drives 3,800 miles in a month, his average operating cost is $0.85 per mile. If he drives 5,800 miles in a month, his average operating cost is $0.75 per mile. Russell has used the high-low method to determine that his monthly cost equation is total cost = $1,600 + $0.56 per mile. 10 points eBook Required: 1. Determine how many miles Russell needs to drive to break even. 2. Assume Russell drove 3,000 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 $2,000 in profit. 4-a. Prepare a contribution margin income statement assuming Russell drove 3,000 miles last month. 4-b. Use the information provided in Req 4a to calculate Russell's degree of operating leverage. Print Complete this question by entering your answers in the tabs below. References Req 1 Req 2 Req 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
