E$5-21($Algo$)$ Estimating Cost Behavior Using High$-$Low Method, Preparing Contribution Margin Income Statement $[$LO $5-3,5-5]$

Bethany Liang delivers parts for several local auto parts stores. She charges clients $$2\mathrm{.}45$ per mile driven. She has determined that if she drives $2,000$ miles in a month, her average operating cost is $$2\mathrm{.}25$ per mile. If Bethany drives $4,000$ miles in a month, her average operating cost is $$1\mathrm{.}50$ per mile.

Required:

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

Complete the contribution margin income statement for the business last month, when Bethany drove $2,200$ miles. $($Assume this falls within the relevant range of operations$).$

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

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

Note: Round your cost per mile answer to $2$ decimal places.

Variable cost per mile driven

Fixed cost