Bethany Liang delivers parts for several local auto parts stores. She charges clients $3.28 per mile driven. She has determined that ifshe drives 2,700 miles in a month, her average operating cost is $3.08 per mile. If Bethany drives 5,400 miles in a month, her averageoperating cost is $2.20 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 drove 2,970 miles. (Assume thisfalls within the relevant range of operations).Complete this question by entering your answers in the tabs below.Required 1 Required 2Using the high-low method, determine Bethany's variable and fixed operating cost components.Note: Round your cost per mile answer to 2 decimal places.Variable cost per mile drivenFixed cost$0.01

Variable costs are costs that vary with the change in the level of output whereas fixed costs are…

Answered: Bethany Liang delivers parts for…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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