Question
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
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). |
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