E$5-20($Algo$)$ Estimating Cost Behavior Using High$-$Low Method, Preparing Contribution Margin Income Statement LO $5-3,5-5]$

Anita Kaur runs a courier service in downtown Seattle. She charges clients $$0\mathrm{.}56$ per mile driven. Anita has determined that if she drives $2,150$ miles in a month, her total operating cost is $$575.$ If she drives $3,250$ miles in a month, her total operating cost is $$751.$

Required:

Using the high$-$low method, determine Anita's variable and fixed operating cost components.

Complete the contribution margin income statement for Anita's service assuming she drove $1,300$ miles last month. $($Assume this falls within the relevant range of operations$).$

Complete this question by entering your answers in the tabs below.

Required $1$

Required $2$

Using the high$-$low method, determine Anita'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