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 $$3\mathrm{.}81$ per mile driven. She has determined that if she drives $2,400$ miles in a month, her average operating cost is $$3\mathrm{.}61$ per mile. If Bethany drives $4,800$ miles in a month, her average operating cost is $$1\mathrm{.}90$ 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 $2,640$ miles. $($Assume this falls within the relevant range of operations$).$

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

Required $1$

Required $2$

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

operating cost is $$1\mathrm{.}90$ 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 $2,640$ miles. $($Assume this falls within the relevant range of operations$).$

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

Required $1$

Required $2$

Complete the contribution margin income statement for the business last month, when Bethany drove $2,640$ miles. $($Assume this falls within the relevant range of operations$).$

Note: Round your intermediate calculations to $2$ decimal places and final answers to the nearest whole number.

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