Determine joyces variable and fixed operating cost component

Assignment Help Cost Accounting

Reference no: EM131889771

Problem

Joyce Murphy runs a courier service in downtown Seattle. She charges clients $0.64 per mile driven. Joyce has determined that if she drives 2,750 miles in a month, her total operating cost is $875. If she drives 3,850 miles in a month, her total operating cost is $1,139.

Required:

1. Using the high-low method, determine Joyce's variable and fixed operating cost components. (Round your cost per unit answer to 2 decimal places.)

2. Complete the contribution margin income statement for Joyce's service assuming she drove 1,950 miles last month. (Assume this falls within the relevant range of operations).

Reference no: EM131889771

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