E$5-20($Static$)$ 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 $$0\mathrm{.}50$ per mile driven. Anita has determined that if she drives $3,300$ miles in a month, her total operating cost is $$875.$ If she drives $4,400$ miles in a month, her total operating cost is $$1,095.$

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 $3,700$ miles last month. $($Assume this falls within the relevant range of operations$).$

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

Required $1$

Complete the contribution margin income statement for Anita's service assuming she drove $3,700$ miles last month. $($Assume this falls within the relevant range of operations$).$

$\backslash$table$[[$Anita Kaur$],[$Contribution Margin Income Statement,$],[$For the Last Month,$],[$Sales revenue,$],[$Variable costs,$],[,],[,],[$Contribution margin,$]]$