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Judy Gazzara, owner of Chef on Call, operates a delivery van for her catering activities. In deciding her pricing, Judy wants to separate the FIXED and VARIABLE portions of her delivery van operating costs so that she has a better idea how delivery distance affects these costs. She has the following data from the past year: Month January February March April May June July August September October November December Miles Driven 15,900 17,300 14,600 16,300 17,200 15,200 14,300 15,000 15,750 15,250 14,500 14,750 Van Operating Costs $5,430 $6,700 $5,000 $5,270 $5,650 $5,400 $5,800 $5,300 $5,495 $5,365 $5,170 $5,235 per mile Compute the variable cost per mile, using the High-Low Method Calculate the fixed costs per month Write the cost equation for the delivery van What would the operating costs be at 17,000 miles? Judy Gazzara operates a food truck and visits 100 fairs and other events each year. She estimates her fixed costs to be $45,000 per year. On average, a customer order will be $15 in sales, costing her around $6. Calculate the contribution margin per customer order Calculate the contribution margin ratio Average number of customers per event to breakeven Average sales volume per event to breakeven Average number of customers per event to earn $90,000 profit

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