E$5-20($Algo$)$ Estimating Cost Behavior Using High$-$Low Method, Preparing Contribution Margin Income

Statement $[$LO $5-3,5-5]$

Anita Kaur runs a courier service in downtown Seattle. She charges clients $$0\mathrm{.}64$ per mile driven. Anita has determined that if she

drives $2,950$ miles in a month, her total operating cost is $$975.$ If she drives $4,050$ miles in a month, her total operating cost is $$1,239.$

Required:

Using the high$-$low method, determine Anita's variable and fixed operating cost components.

Complete the contribution margin income statement for Anita's service assuming she drove $2,150$ miles last month. $($Assume this

falls within the relevant range of operations$).$

Complete this question by entering your answers in the tabs below.

Required $2$

Complete the contribution margin income statement for Anita's service assuming she drove $2,150$ miles last month. $($Assume

this falls within the relevant range of operations$).$

Solve required $1$ & $2$