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part 2 Bethany Link delivers parts for several local auto parts stores. She charges clients $2.45 per mile driven. She has determined that if she
part 2
Bethany Link delivers parts for several local auto parts stores. She charges clients $2.45 per mile driven. She has determined that if she drives 2,000 miles in a month, her average operating cost is $2.25 per mile. If Bethany drives 4,000 miles in a month, her average operating cost is $1.50 per mile. Required: 1. Using the high-low method, determine Bethany's variable and fixed operating cost components. (Round your cost per unit answer to 2 decimal places.) Variable Cost per Mile Driven Fixed Cost 2. Complete the contribution margin income statement for the business last month, when Bethany drove 2,200 miles. (Assume this falls within the relevant range of operations). (Round your intermediate calculations to 2 decimal places and final answers to the nearest whole number.) BETHANY LINK Contribution Margin Income Statement For the Last Month Contribution Margin Net Operating Income Mountain Dental Services is a specialized dental practice whose only service is filling cavities. Mountain has recorded the following for the past nine months: Number of Cavities Filled Total Cost Month $6.200 5,750 5,550 5,550 5,850 5,150 6,150 6,100 5,050 January February March April May June 650 500 625 425 600 450 July August September 575 700 350 Required: 1. Use the high-low method to estimate total fixed cost and variable cost per cavity filled. (Round your answers to 2 decimal places.) Fixed Cost Variable Cost per Unit 2. Using these estimates, calculate Mountain's total cost for filling 400 cavities. Estimated Total CostStep by Step Solution
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