Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. e5-21 (algo) estimating cost behavior using high-l

E5-21 (Algo) Estimating Cost Behavior Using High-Low Method, Preparing Contribution Margin Income Statement [LO 5-3,...

50.1K

Verified Solution

Question

Accounting

image
E5-21 (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 $3.09 per mile driven. She has determined that if she drives 2,200 miles in a month. her average operating cost is $2,89 per mile. If Bethany drives 4,400 miles in a month, her average operating cost is $1.70 per mile. Required: 1. Using the high-low method, determine Bethany's variable and fixed operating cost components. 2. Complete the contribution margin income statement for the business last month, when Bethany drove 2,420 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 foxed operating cost compon Note: Round your cost per mile answer to 2 decimal places

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students