07 Dec Bethany Link delivers parts for several local auto
Bethany Link delivers parts for several local auto parts stores. She charges clients $0.75 per mile driven. She has determined that if she drives 2,100 miles in a month, her average operating cost is $0.55 per mile. If Bethany drives 4,200 miles in a month, her average operating cost is $0.40 per mile. Required: a. Using the high-low method, determine Bethany’s variable and fixed operating cost components. (Round your cost per unit answer to 2 decimal place.) 1. variable cost per unit= ? 2. fixed cost= ? b. Complete the contribution margin income statement for the business last month, when Bethany drove 2,400 miles. (Assume this falls within the relevant range of operations).
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