Bethany Link delivers parts for several local auto parts stores. She charges clients $2.60 per mile driven. She has determined that if she drives 2,500 miles in a month, her average operating cost is $2.40 per mile. If Bethany drives 5,000 miles in a month, her average operating cost is $2.00 per mile.

Required:
1. Using the high-low method, determine Bethany’s variable and fixed operating cost components. (Round your cost per unit answer to 2 decimal places.)

2. Complete the contribution margin income statement for the business last month, when Bethany drove 2,750 miles. (Assume this falls within the relevant range of operations). (Round your intermediate calculations to 2 decimal places and final answers to the nearest whole number.)

Answer rating: 100% (QA)

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