Russell Preston delivers parts for several local auto parts stores. He charges clients $0.90 per mile driven Russell has determined that the drives 2100 miles in a month, his average operating cost is $0.60 per mile.If he drives 3100 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 = $1.220 $0.29 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 carned a profit or a loss last month 3. Determine how many miles Russell must drive to earn $2.135 in profit. 4-0. 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. Reg 1 Reg 2 Reg 3 Req4 Reg 48 Determine how many miles Russell needs to drive to break even Break Even Miles Miles Rag Reg 2 > a if he drives 2,100 miles in a month, his average operating cost is $0.60 per mile. If he drives 3,100 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 $1.220 + $0.29 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 pro a loss last month. 3. Determine how many miles Russell must drive to earn $2.135 in profit. 4-a. Prepare a contribution margin Income statement assuming Russell drove 2,500 miles last month. 4-6. Use the Information provided in Reg 4a to calculate Russell's degree of operating leverage. Inces Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4A Reg 40 Determine how many miles Russell must drive to eam $2,135.00 in profit. Target Mies Miles BE 3. Determine how many miles Russell must drive to earn $2.135 in profit. 4-0. 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. Reg 1 Reg 2 Req3 Req 4A Reg 43 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 operating cost is $0.50 per mile. Russell has used the high-low method to determine that his monthly cost equation is total cost $1,220 - $0.29 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 on a loss last month 3. Determine how many miles Russell must drive to earn $2,135 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. Reg 1 Reg 2 Regu Reg 4A Reg 40 Use the information provided in Reg 4a to calculate Russell's degree of operating leverage (Round your answer to the 2 decimal places.) Dogreo of Operating Leverage
