Question
Joyce Murphy runs a courier service in downtown Seattle. She charges clients $0.56 per mile driven. Joyce has determined that if she drives 2,550 miles
Joyce Murphy runs a courier service in downtown Seattle. She charges clients $0.56 per mile driven. Joyce has determined that if she drives 2,550 miles in a month, her total operating cost is $775. If she drives 3,650 miles in a month, her total operating cost is $951. 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.)
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2. Complete the contribution margin income statement for Joyces service assuming she drove 1,700 miles last month. (Assume this falls within the relevant range of operations).
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