1 | ||
Operating cost | Miles | |
High level | 1186 | 3900 |
Low level | 900 | 2800 |
Difference | 286 | 1100 |
Variable cost Mile Driven | 0.26 | =286/1100 |
Fixed cost | 172 | =1186-(3900*0.26) |
2 | ||
Contribution Margin Income Statement | ||
For the last month | ||
Sales revenue | 1320 | =2000*0.66 |
Variable expenses | 520 | =2000*0.26 |
Contribution margin | 800 | |
Fixed expenses | 172 | |
Net Operating income | 628 |
Joyce Murphy runs a courier service in downtown Seattle. She charges clients $0.66 per mile driven....
Joyce Murphy runs a courier service in downtown Seattle. She charges clients $0.60 per mile driven. Joyce has determined that if she drives 2650 miles in a month, her total operating cost is $825. If she drives 3.750 miles in a month, her total operating cost is $1,045. Required: 1. Using the high-low method, determine Joyce's variable and fixed operating cost components 2. Complete the contribution margin income statement for Joyce's service assuming she drove 1850 miles last month. (Assume...
Joyce Murphy runs a courier service in downtown Seattle. She charges clients $0.60 per mile driven. Joyce has determined that if she drives 2,850 miles in a month, her total operating cost is $925. If she drives 3,950 miles in a month, her total operating cost is $1,145 Required: 1. Using the high-low method, determine Joyce's variable and fixed operating cost components. (Round your cost per unit answer to 2 decimal places.) Variable Cost per Mile Driven Fixed Cost 2....
Joyce Murphy runs a courier service in downtown Seattle. She charges clients $0.50 per mile driven. Jayce has determined that if she drives 3,300 miles in a month, her total operating cost is $875. If she drives 4,400 miles in a month, her total operating cost is $1,095. Required: 1. Using the high-low method, determine Joyce's variable and fixed operating cost components. (Round your cost per unit answer to 2 decimal places.) Variable Cost per Mile Driven Fixed Cost 2....
Joyce Murphy runs a courier service in downtown Seattle. She charges clients $0.49 per mile driven. Joyce has determined that if she drives 3,100 miles in a month, her total operating cost is $948. If she drives 4,600 miles in a month, her total operating cost is $1,218. Joyce has used the high-low method to determine that her monthly cost equation is total monthly cost = $390 + $0.18 per mile driven. Required: 1. Determine how many miles Joyce needs...
Joyce Murphy runs a courier service in downtown Seattle. She charges clients $0.50 per mile driven. Joyce has determined that if she drives 2,600 miles in a month, her total operating cost is $700. If she drives 5,100 miles in a month, her total operating cost is $950. Joyce has used the high-low method to determine that her monthly cost equation is total monthly cost = $440 + $0.10 per mile driven. Required: 1. Determine how many miles Joyce needs...
Joyce Murphy runs a courier service in downtown Seattle She charges clents $0.50 per mile driven Joyce hais determined that if she drives 3,300 miles in a month, her total operating cost is $875. If she drives 4,400 miles in a month, her total operating cost is $1,095. Joyce has used the high-low method to determine that her monthly cost equation is: total monthly cost $215+$0.20 per mile driven Required: 1. Determine how many miles Joyce needs to drve to...
Joyce Murphy runs a courier service in downtown Seattle. She charges clients $0.57 per mile driven. Joyce has determined that if she drives 3,400 miles in a month, her total operating cost is $1,014. If she drives 5,200 miles in a month, her total operating cost is $1,302. Joyce has used the high-low method to determine that her monthly cost equation is: total monthly cost = $470 + $0.16 per mile driven. Required: 1. Determine how many miles Joyce needs...
Bethany Link delivers parts for several local auto parts stores. She charges clients $3.81 per mile driven. She has determined that if she drives 2,400 miles in a month, her average operating cost is $3.61 per mile. If Bethany drives 4,800 miles in a month, her average operating cost is $1.90 per mile. Required: 1. Using the high-low method, determine Bethany's variable and fixed operating cost components. 2. Complete the contribution margin income statement for the business last month, when...
Bethany Link delivers parts for several local auto parts stores. She charges clients $3.44 per mile driven. She has determined that if she drives 2,300 miles in a month, her average operating cost is $3.24 per mile. If Bethany drives 4,600 miles in a month, her average operating cost is $1.80 per mile. Required: 1. Using the high-low method, determine Bethany's variable and fixed operating cost components. 2. Complete the contribution margin income statement for the business last month, when...
Russell Preston delivers parts for several local auto parts stores. He charges clients $0.85 per mile driven. Russell has determined that if he drives 3,000 miles in a month, his average operating cost is $0.75 per mile. If he drives 5,000 miles in a month, his average operating cost is $0.55 per mile. Russell has used the high-low method to determine that his monthly cost equation is total cost = $1,320 + $0.25 per mile. Required: 1. Determine how many...