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Joyce Murphy runs a courier service in downtown Seattle. She charges clients $ 0 . 5 7 per mile driven. Joyce has determined that if

Joyce Murphy runs a courier service in downtown Seattle. She charges clients $0.57 per mile driven. Joyce has determined that if she drives 2,600 miles in a month, her total operating cost is $671. If she drives 5,500 miles in a month, her total operating cost is $990. 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:
Determine how many miles Joyce needs to drive to break even.
Calculate Joyce's degree of operating leverage if she drives 5,700 miles.
Suppose Joyce took a week off and her sales for the month decreased by 26 percent. Using the degree of operating leverage, calculate the effect this will have on her profit for that month.
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Reorfired 1
Determine how many miles Joyce needs to drive to break even.
Note: Round your intermediate calculations to 2 decimal places and final answer to the nearest whole number.
Break-Even Units
Miles
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