Question
Joyce Murphy runs a courier service in downtown Seattle. She charges clients $0.62 per mile driven. Joyce has determined that if she drives 2,900 miles
Joyce Murphy runs a courier service in downtown Seattle. She charges clients $0.62 per mile driven. Joyce has determined that if she drives 2,900 miles in a month, her total operating cost is $950. If she drives 4,000 miles in a month, her total operating cost is $1,192. Required: 1. Using the high-low method, determine Joyces variable and fixed operating cost components. (Round your cost per unit answer to 2 decimal places.)
2. Complete the contribution margin income statement for Joyces service assuming she drove 2,100 miles last month. (Assume this falls within the relevant range of operations).
eallle. She charges clients $0.62 pe' "ile driven. Joyce has dele mined lhalif she di 2,000miles in a mon h her tol ost s S 50. Isle d es 40 0 es in a month, he Joy e Murphy runs a courier service in duwntown tolal operating cost is $1,192. e op 1 ng Required 1. Using the high-low method, determine Joyce's variable and fixed operating cost components. (Round your cost per unit answer to 2 decimal places.) Variable Cost per Mile Driven Fixed Cost 2. Complete the contribution margin inoome statement for Joyce's service assuming she drove 2,100 miles last month. (Assume this falls within the relevant range of operations) JOYCE MURPHY Contribution Margin Income Statement For the Last Month Revenue iable Costs Contribution Margin xed Costs Net Operating IncomeStep by Step Solution
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