Analyzing Mixed Costs Using High-Low Method, Preparing Contribution Margin Income Statement
Cory Bryant runs a courier service in downtown Phoenix. He charges clients $0.50 per mile driven. Cory has determined that if he drives 3,000 miles in a month, his total operating cost is $875. If he drives 4,000 miles in a month, his total operating cost is $1,025.
Required:
1. Using the high-low method, determine Cory’s variable and fixed operating cost components. Show this as a linear formula (Y = A + BX).
2. Prepare a contribution margin income statement for Cory’s service assuming he drove 2,400 miles last month.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.