Russell Preston delivers parts for several local auto parts stores. He charges clients 0.90 per mile driven. Russell has determined that if he drives 3,800 miles in a month, his average operating cost is $0.80 per mile. If he drives 5,800 miles in a month, his average operating cost is $0.70 per mile. Russell has used the high-low method to determine that his monthly cost equation is: total cost = $585.00 + $0.51 per mile.

Break-Even Miles Miles 2. Assume Russell drove 2,000 miles last month. Without making any additional calculations, determine whether he earned a profit or a loss last month. Loss Profit 3. Determine how many miles Russell must drive to earn $780.00 in profit. arget Miles Miles 4-a. Prepare a contribution margin income statement assuming Russell drove 2,000 miles last month. (Enter your answers rounded to 2 decimal places.) RUSSELL PRESTON Contribution Margin Income Statement For Last Month Contribution Margin Income from Operations 4-b. Use the above information to calculate Russell's degree of operating leverage. (Round your answer to the 2 decimal places.) egree o age