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Joyce Murphy runs a courier service in downtown Seattle. She charges clients $0.51 per mile driven. Joyce has determined that if she drives 3,300 miles

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Joyce Murphy runs a courier service in downtown Seattle. She charges clients $0.51 per mile driven. Joyce has determined that if she drives 3,300 miles in a month, her total operating cost is $748. If she drives 5,600 miles in a month, her total operating cost is $1,001. Joyce has used the high-low method to determine that her monthly cost equation is total monthly cost =$385+$0.11 per mile driven. Required: 1. Determine how many miles Joyce needs to drive to break even. 2. Calculate Joyce's degree of operating leverage if she drives 5,800 miles. 3. Suppose Joyce took a week off and her sales for the month decreased by 23 percent. Using the degree of operating leverage, calculate the effect this will have on her profit for that month

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