value: 6.00 points

Joyce Murphy runs a courier service in downtown Seattle. She charges clients $1.25 per mile driven. Joyce has determined that if she drives 3,500 miles in a month, her total operating cost is $1,800. If she drives 4,700 miles in a month, her total operating cost is $2,400.

Required:
1.	Using the high-low method, determine Joyces variable and fixed operating cost components. (Round your cost per unit answer to 2 decimal place.)

2.	Prepare a contribution margin income statement for Joyces service assuming she drove 4,000 miles last month. (Assume this falls within the relevant range of operations).