John operates a delivery service. He noted that his highest fuel cost was $3,000 in August when he drove 6,000 miles. His lowest fuel cost was $1,800 in February when he drove 3,000 miles. What is the variable cost per mile of fuel? A) $0.50 B) $0.75 C) $0.60 D) $0.40
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- 6. Answer ALL THREE of the following required questions!Russell Preston delivers parts for several local auto parts stores. He charges clients $0.75 per mile driven. Russell has determined that if he drives 3,480 miles in a month, his average operating cost is $0.55 per mile. If he drives 4,640 miles in a month, his average operating cost is $0.50 per mile. Russell has used the high-low method to determine that his monthly cost equation is total cost = $696 + $0.35 per mile. Required: 1. Determine how many miles Russell needs to drive to break even. 2. Assume Russell drove 2,040 miles last month. Without making any additional calculations, determine whether he earned a profit or a loss last month. 3. Determine how many miles Russell must drive to earn $1,000 in profit. 4. a. Prepare a contribution margin income statement assuming Russell drove 2,040 miles last month. b. Use the information provided in Req 4a to calculate Russell's degree of operating leverage. Complete this question by entering your answers in the tabs below. Req 1 Req 2…Russell Preston delivers parts for several local auto parts stores. He charges clients $0.75 per mile driven. Russell has determined that if he drives 3,270 miles in a month, his average operating cost is $0.55 per mile. If he drives 4,360 miles in a month, his average operating cost is $0.50 per mile. Russell has used the high-low method to determine that his monthly cost equation is total cost = $654 + $0.35 per mile. Required: Determine how many miles Russell needs to drive to break even. Assume Russell drove 1,935 miles last month. Without making any additional calculations, determine whether he earned a profit or a loss last month. Determine how many miles Russell must drive to earn $1,000 in profit. Prepare a contribution margin income statement assuming Russell drove 1,935 miles last month. Use the information provided in Req 4a to calculate Russell’s degree of operating leverage.
- Joyce Murphy runs a courier service in downtown Seattle. She charges clients $0.54 per mile driven. Joyce has determined that if she drives 3,200 miles in a month, her total operating cost is $829. If she drives 5,900 miles in a month, her total operating cost is $1,153. Joyce has used the high-low method to determine that her monthly cost equation is total monthly cost = $445 $0.12 per mile driven. Required: 1. Determine how many miles Joyce needs to drive to break even. 2. Calculate Joyce's degree of operating leverage if she drives 6,100 miles. 3. Suppose Joyce took a week off and her sales for the month decreased by 23 percent. Using the degree of operating leverage, calculate the effect this will have on her profit for that monthAn American-made car costs $28, 500 and has a rated gasoline mileage of 28 miles/ gal. A car of European manufacture, costs $35,700, and has a rated mileage of 19 km/L. The cost of gasoline is $3.25/gal. If the two cars deliver their rated mileage, estimate how many miles you would drive for the lower fuel consumption car to compensate for its higher cost.Flexgen Corporation uses trucks to transport bottles from the warehouse to different retail outlets. Gasoline costs are $0.25 per kilometre driven. Insurance costs are $5,500 per year. Calculate the total costs and the cost per kilometre for gasoline and insurance if the truck is driven (a) 21,000 kilometres per year or (b) 37,000 kilometres per year. Complete the table below. (Round the costs per kilometre to the nearest cent, $X.XX.) Total costs Cost per kilometre (a) Driven 21,000 kilometres (b) Driven 37,000 kilometres
- 119. Unified Parcel, Inc., operates a local parcel delivery service. The company keeps detailed records relating to operating costs of trucks, and has found that if a truck is driven 110,000 miles per year the operating cost is 7.5 cents per mile. This cost increases to 8.75 cents per mile if a truck is driven 60,000 miles per year. Required: Estimate the cost formula for truck operating costs using the high-low method.Bethany Liang delivers parts for several local auto parts stores. She charges clients $3.65 per mile driven. She has determined that if she drives 2,800 miles in a month, her average operating cost is $3.45 per mile. If Bethany drives 5,600 miles in a month, her average operating cost is $2.30 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 3,080 miles. (Assume this falls within the relevant range of operations). Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using 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 driven Fixed costBethany Liang delivers parts for several local auto parts stores. She charges clients $3.28 per mile driven. She has determined that if she 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 average operating 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 this falls within the relevant range of operations). Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using 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 driven Fixed cost $ 0.01
- Which of the following is an example of a mixed cost behavior? a. A rental van charges $50 / day for the first 100 miles, and $0.42 per mile beyond100 miles.b. A piece of equipment can be leased for a year for a fee of $14,000 regardless ofhow many hours it is operated.c. A vacation home charges $250 per day regardless of the number of occupants.d. A local utility charges $0.14 per kilowatt-hour of energy consumed.Bethany Link delivers parts for several local auto parts stores. She charges clients $1.73 per mile driven. She has determined that if she drives 1,400 miles in a month, her average operating cost is $1.53 per mile. If Bethany drives 2,800 miles in a month, her average operating cost is $0.90 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 drove 1,540 miles. (Assume this falls within the relevant range of operations). Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using the high-low method, determine Bethany's variable and fixed operating cost components. (Round your cost per unit answer to 2 decimal places.)Please see attachment and provide answers. Thank you