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Russel Preston delivers parts for several local auto parts stores. He charges clients 0.90 per mile driven. Russel has determined that if he drives
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Russel Preston delivers parts for several local auto parts stores. He charges clients 0.90 per mile driven. Russel has determined that if he drives 2,100 miles in a month, his average operating cost is $0.80 per mile. If he drives 4,100 miles in a month, his average operating cost is $0.40 per mile. Russell has used the high-Ion method to determine that his monthly post equation is total cost - $1,420.00+ $0.19 per mie. Required: 1. Determine how many miles Russal needs to drive to break even Break Even Milos Mos 2. Assuma Russel nova 2,500 miles last month without maldng any additional calculations, determine whether he sand a profitar a loss last month O LOGS O Profit 3. Delerine how mury miles Russelmus drvetu eern $1,420.00 in profit Target Miles MICS 4-a. Prepare a contribution margin income statement assuming Russel drove 2,500 mies last month. (Enter your answers rounded to 2 decimal places.) RUSSELL PRESTON Contribution Margin Income Statement For Last Manth Contribution Mangin Income from Operations 4-1. Use ile abwe information to calculate Russell's degree of operating leverage (Round your answer to the 2 decimal places. Degree of OperatingStep by Step Solution
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