Tina Sutton delivers flowers for several local flower stores. She charges clients \($0.85\) per mile driven. Tina has determined that if she drives 1,200 miles in a month, her average operating cost is \($0.70\) per mile. If she drives 2,000 miles in a month, her average operating cost is \($0.60\) per mile.

Tina has used the high-low method (covered in Chapter 5) to determine that her monthly cost equation is: Total Cost = \($300\) + \($0.45\) per Mile.

Required:

1. Determine how many miles Tina needs to drive to break even.

2. Assume Tina drove 900 miles last month. Without making any additional calculations, deter¬ mine whether she earned a profit or a loss for the month.

3. Prepare a contribution margin income statement assuming Tina drove 900 miles last month.

4. If Tina wants to earn \($800\) a month, determine how many miles she must drive.