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oyce Murphy runs a courier service in downtown Seattle. She charges clients $ 0 . 5 6 per mile driven. Joyce has determined that if
oyce Murphy runs a courier service in downtown Seattle. She charges clients $ per mile driven. Joyce has determined that if she drives miles in a month, her total operating cost is $ If she drives miles in a month, her total operating cost is $ Joyce has used the highlow method to determine that her monthly cost equation is total monthly cost $ $ per mile driven.
Required:
Determine how many miles Joyce needs to drive to break even.
Calculate Joyces degree of operating leverage if she drives miles.
Suppose Joyce took a week off and her sales for the month decreased by percent. Using the degree of operating leverage, calculate the effect this will have on her profit for that month.
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