Russell Preston dellvers parts for several local auto parts stores. He charges clients $0.75 per mile driven. Russell has determined that if he drives 3,390 miles in a month, his average operating cost is $0.55 per mile. It he dilves 4,520 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 =$678 +$0.35 per mile. Required: 1. Determine how many miles Russell needs to ditve to break even. 2. Assume Russell drove 1,995 miles last month. Without making any additional calculations, determine whether he earned a profit or a loss last month. 3. Determine how many miles Russell must dive to earn $1,000 in profit. 4. o. Prepare a contribution margln income statement assuming Russell drove 1,995 miles last month. b. Use the Information provided in Req 4 a to calculate Russell's degree of operating leverage. Complete this question by entering your answers in the tabs below. Determine how many miles Russell needs to drive to break even. Note: Do not round your intermediate calculations. Russell Preston delivers parts for several local auto parts stores. He charges cllents $075 per mile driven. Russell has determined that If he drives 3,390 miles in a month, his average operating cost is $0.55 per mile. If he drives 4.520 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 $678 +$0.35 per mile. Required: 1. Determine how many milles Russell needs to drive to break even. 2. Assume Russell drove 1,995 miles last month. Without making any additional calculations, determine whether he earned a profit or a loss last month. 3. Determine how many mlles Russell must drive to earn $1,000 in profit. 4. a. Prepare a contribution margin income statement assuming Russell drove 1,995 miles last month. b. Use the information provided in Req 4 a to calculate Russell's degree of operating leverage: Complete this question by entering your answers in the tabs below. Assume Russell drove 1,995 miles last month. Without makng any additionat calculations, determine whether he earned a profit or a loss last month. Note: Do not round your internediate cakculations. Russell Preston delivers parts for several local auto parts stores. He charges clients $0.75 per mile dilven. Russell has determined that if he drives 3.390 mlles in a month, his average operating cost is 50.55 per mile. If he dives 4.520 miles in a month, his average operating cost is 50.50 per mile. Russell has used the high-low method to determine that his monthly cost equation is total cost =5678 +$0,35 per mile. Required: 1. Detemine how many miles Russell needs to ditve to break even 2. Assume Russell drove 1,995 miles last month. Without making any additional calculations, determine whether he earned a profit of a loss last month. 3. Determine how many miles Russell must drive to earn $1,000 in profit. 4. o. Prepare a contribution margin income statement assuming Russell diove 1,995 miles last month. b. Use the information provided in Req 4 a to calculate Russelis degree of operating leverage. Complete this question by entering your answers in the tabs below. Determine how many miles Russell must drive to eam 51,000 in profit. Note: Do not round your internediate calculations. 3. Determine how many miles Russell must drive to earn $1,000 in profit 4. 0. Prepare a contribution margin income statement assuming Russell drove 1,995 miles last month. b. Use the information provided in Req 4 a to calculate Russell's degree of operating leverage. Complete this question by entering your answers in the tabs below. Prepare a contribution margin income statement assuming Russell drove 1,995 miles last month. Note: Do not round your intermediate colculations. 1. Determine how many miles Russell needs to dilve to break even. 2. Assume Russell drove 1,995 miles last month. Without making any additional calculations, determine whether he earned a profiti loss last month. 3. Determine how many miles Russell must drive to earn $1,000 in profit. 4. o. Prepare a contribution margin income statement assuming Russell diove 1,995 miles last month. b. Use the information provided in Req 4 a to calculate Russell's degree of operating leverage. Complete this question by entering your answers in the tabs below. Use the information provided in Rhe 4 a to calculate Russeil's degree of operating leverage Note: Do not round your lintermediate calculations. Round your answer to the 2 decimal places
