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# Anita Kaur runs a courier service in downtown Seattle. She charges clients $0.62 per mile driven. Anita has determined that if she drives 2,450 miles in a month, her total operating cost is $725. If she drives 3,550 miles

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## Anita Kaur runs a courier service in downtown Seattle. She charges clients $0.62 per mile driven. Anita has determined that if she drives 2,450 miles in a month, her total operating cost is $725. If she drives 3,550 miles in a month, her total operating cost is $857. Required: 1. Using the high-low method, determine Anita's variable and fixed operating cost components. 2. Complete the contribution margin income statement for Anita's service assuming she drove 1,600 miles last month. (Assume this falls within the relevant range of operations). Anita Kaur runs a courier service in downtown Seattle. She charges clients $0.62 per mile driven. Anita has determined that if she drives 2,450 miles in a month, her total operating cost is $725. If she drives 3,550 miles in a month, her total operating cost is $857. Required: 1. Using the high-low method, determine Anita's variable and fixed operating cost components. 2. Complete the contribution margin income statement for Anita's service assuming she drove 1,600 miles last month. (Assume this falls within the relevant range of operations). Anita Kaur runs a courier service in downtown Seattle. She charges clients $0.62 per mile driven. Anita has determined that if she drives 2,450 miles in a month, her total operating cost is $725. If she drives 3,550 miles in a month, her total operating cost is $857. Required: 1. Using the high-low method, determine Anita's variable and fixed operating cost components. 2. Complete the contribution margin income statement for Anita's service assuming she drove 1,600 miles last month. (Assume this falls within the relevant range of operations).

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## To determine Anita s variable and fixed operating cost components using the high low method we need View the full answer

**Related Book For**

## Managerial Accounting

ISBN: 978-0078025518

2nd edition

Authors: Stacey Whitecotton, Robert Libby, Fred Phillips

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