omework O Saved PA6-2 (Algo) Analyzing Break-Even Point, Setting Target Profit, Degree of Operating Leverage [LO 6-1, 6-2, 6-5] Russell Preston delivers parts for several local auto parts stores. He charges clients $0.70 per mille driven. Russell has determined that if he drives 3,600 miles in a month, his average operating cost is $0.55 per mile. If he drives 5,600 miles in a month, his average operating cost is $0.50 per mile. Russell has used the high-low method to determine that his monthly cost equation is total cost $580 +$0.41 per mile. Required: 1. Determine how many miles Russell needs to drive to break even. 2. Assume Russell drove 2,500 miles last month. Without making any additional calculations, determine whether he earned a profit or a loss last month. 3. Determine how many miles Russell must drive to earn $870 in profit. 4-a. Prepare a contribution margin income statement assuming Russell drove 2,500 miles last month. 4-b. Use the information provided in Req 4a to calculate Russell's degree of operating leverage. Complete this question by entering your answers in the tabs below. Req 11 Req 2 Req 3 Req 4A Req 48 Determine how many miles Russell needs to drive to break even. Break Even Miles Miles Rag 1 Req 2 > Help Homework Saved PA6-2 (Algo) Analyzing Break-Even Point, Setting Target Profit, Degree of Operating Leverage [LO 6-1, 6-2, 6-5] Russell Preston delivers parts for several local auto parts stores. He charges clients $0.70 per mile driven. Russell has determined that if he drives 3,600 miles in a month, his average operating cost is $0.55 per mile. If he drives 5.600 miles in a month, his average operating cost is $0.50 per mile. Russell has used the high-low method to determine that his monthly cost equation is total cost $580 $0.41 per mile. Required: 1. Determine how many miles Russell needs to drive to break even. 2. Assume Russell drove 2,500 miles last month. Without making any additional calculations, determine whether he earned a profit or a loss last month. 3. Determine how many miles Russell must drive to earn $870 in profit. 4-a. Prepare a contribution margin income statement assuming Russell drove 2,500 miles last month. 4-b. Use the information provided in Req 4a to calculate Russell's degree of operating leverage. Complete this question by entering your answers in the tabs below. Req 1 Reg-2 Req 3 Req 4A Req 48 Assume Russell drove 2,500 miles last month. Without making any additional calculations, determine whether he earned a profit or a loss last month. OProfit OLoss He PA6-2 (Algo) Analyzing Break-Even Point, Setting Target Profit, Degree of Operating Leverage [LO 6-1, 6-2, 6-5] Russell Preston delivers parts for several local auto parts stores. He charges clients $0.70 per mile driven. Russell has determined that if he drives 3,600 miles in a month, his average operating cost is $0.55 per mile. If he drives 5,600 miles in a month, his average operating cost is $0.50 per mile. Russell has used the high-low method to determine that his monthly cost equation is total cost $580 $0.41 per mile. Required: 1. Determine how many miles Russell needs to drive to break even. 2. Assume Russell drove 2,500 miles last month. Without making any additional calculations, determine whether he earned a profit or a loss last month. 3. Determine how many miles Russell must drive to earn $870 in profit. 4-a. Prepare a contribution margin income statement assuming Russell drove 2,500 miles last month. 4-b. Use the information provided in Req 4a to calculate Russell's degree of operating leverage. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 48 Determine how many miles Russell must drive to earn $870.00 in profit. Targot Miles Miles omework Seved Russell Preston delivers parts for several local auto parts stores. He charges clients $0.70 per mille driven. Russell has determined that if he drives 3,600 miles in a month, his average operating cost is $0.55 per mile. If he drives 5,600 miles in a month, his average operating cost is $0.50 per mile. Russell has used the high-low method to determine that his monthly cost equation is total cost- $580 $0.41 per mile. Required: 1. Determine how many miles Russell needs to drive to break even. 2. Assume Russell drove 2.500 miles last month. Without making any additional calculations, determine whether he earned a profit or a loss last month. 3. Determine how many miles Russell must drive to earn $870 in profit. 4-6. Prepare a contribution margin income statement assuming Russell drove 2.500 miles last month. 4-b. Use the information provided in Req 4a to calculate Russell's degree of operating leverage. Complete this question by entering your answer swers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 48 Prepare a contribution margin income statement assuming Russell drove 2,500 miles last month RUSSELL PRESTON Contribution Margin Income Statement For Last Month Contribution Margin Income from Operations Help PA6-2 (Algo) Analyzing Break-Even Point, Setting Target Profit, Degree of Operating Leverage (LO 6-1. 6-2, 6-5] Russell Preston delivers parts for several local auto parts stores. He charges clients $0.70 per mile driven. Russell has determined that if he drives 3,600 miles in a month, his average operating cost is $0.55 per mile. If he drives 5,600 miles in a month, his average operating cost is $0.50 per mile. Russell has used the high-low method to determine that his monthly cost equation is total cost $580 $0.41 per mile. Required: 1. Determine how many miles Russell needs to drive to break even 2. Assume Russell drove 2.500 miles last month. Without making any additional calculations, determine whether he eamed a profit or a loss last month. 3. Determine how many miles Russell must drive to earn $870 in profit. 4-a. Prepare a contribution margin income statement assuming Russell drove 2,500 miles last month. 4-b. Use the information provided in Req 4a to calculate Russell's degree of operating leverage. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 48 Use the information provided in Req 4a to calculate Russell's degree of operating leverage. (Round your answer to the 2 decimal places.) Degree of Operating Leverage