E$5-21($Algo$)$ Estimating Cost Behavior Using High$-$Low Method, Preparing Contribution Margin Income Statement $[$LO $5-3,5-5]$

Bethany Link delivers parts for several local auto parts stores. She charges clients $$2\mathrm{.}29$ per mile driven. She has determined that if she drives $1,600$ miles in a month, her average operating cost is $$2\mathrm{.}09$ per mile. If Bethany drives $3,200$ miles in a month, her average operating cost is $$1\mathrm{.}10$ per mile.

Required:

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

Complete the contribution margin income statement for the business last month, when Bethany drove $1,760$ miles. $($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 Bethany's variable and fixed operating cost components. $($Round your cost per unit answer to $2$ decimal places.$)$

Variable Cost per Mile Driven

Fixed Cost