Part 1:

Part 2

Solve and explain please!!!

Analyzing Break-Even Point, Setting Target Profit, Degree of Operating Leverage [LO 6-1, 6-2, 6-5] Russell Preston delivers parts for several local auto parts stores. He charges clients 0.72 per mile driven. Russell has determined that if he drives 2,100 miles in a month, his average operating cost is $0.50 per mile. If he drives 4,400 miles in a month, his average operating cost is $0.36 per mile. Russell has used the high-low method to determine that his monthly cost equation is: total cost = $573.30 + $0.23 per mile. Determine how many miles Russell needs to drive to break even. Assume Russell drove 1,470 miles last month. Without making any additional calculations, determine whether he earned a Determine how many miles Russell must drive to earn $999.60 in profit. Prepare a contribution margin income statement assuming Russell drove 1,470 miles last month. (Enter your answers rounded to 2 decimal places.) Use the above information to calculate Russell's degree of operating leverage. (Round your answer to the 2 decimal places.)