Joyce Murphy runs a courier service in downtown Seattle. She charges clients $0.50 per mile driven. Joyce has de 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 $ $ 0.20 215 2. Complete the contribution margin income statement for Joyce's service assuming she drove 2,400 miles last month. (Assume this falls within the relevant range of operations).

Joyce Murphy runs a courier service in downtown Seattle. She charges clients $0.50 per mile driven. Joyce has de 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 $ $ 0.20 215 2. Complete the contribution margin income statement for Joyce's service assuming she drove 2,400 miles last month. (Assume this falls within the relevant range of operations).

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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