Please do not give solution in image format thanku Complete this question by entering your answers in the tabs below.Required 1 Required 2Complete the contribution margin income statement for Anita's service assuming she drove 2,150 miles last month. (Assumethis falls within the relevant range of operations).Anita KaurContribution Margin Income StatementFor the Last MonthContribution MarginNet Operating Income< Required 1Required 2 > E5-20 (Algo) Estimating Cost Behavior Using High-Low Method, Preparing Contribution Margin IncomeStatement [LO 5-3, 5-5]Anita Kaur runs a courier service in downtown Seattle. She charges clients $0.64 per mile driven. Anita has determined that if shedrives 2,950 miles in a month, her total operating cost is $975. If she drives 4,050 miles in a month, her total operating cost is $1,239.Required:1. Using the high-low method, determine Anita's variable and fixed operating cost components.2. Complete the contribution margin income statement for Anita's service assuming she drove 2,150 miles last month. (Assume thisfalls within the relevant range of operations).Complete this question by entering your answers in the tabs below.Required 1 Required 2Complete the contribution margin income statement for Anita's service assuming she drove 2,150 miles last month. (Assumethis falls within the relevant range of operations).Anita KaurContribution Margin Income StatementFor the Last Month

High-Low Method = (Highest Activity cost - Lowest Activity cost)/( Highest Activity - Lowest…

Answered: Complete the contribution margin income…

Complete the contribution margin income statement for Anita's service assuming she drove 2,150 miles last month. (Assume this falls within the relevant range of operations). Anita Kaur

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 5EB: Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90....

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Joyce Murphy runs a courier service in downtown Seattle. She charges clients $0.54 per mile driven. Joyce has determined that if she drives 3,200 miles in a month, her total operating cost is $829. If she drives 5,900 miles in a month, her total operating cost is $1,153. Joyce has used the high-low method to determine that her monthly cost equation is total monthly cost = $445 $0.12 per mile driven. Required: 1. Determine how many miles Joyce needs to drive to break even. 2. Calculate Joyce's degree of operating leverage if she drives 6,100 miles. 3. Suppose Joyce took a week off and her sales for the month decreased by 23 percent. Using the degree of operating leverage, calculate the effect this will have on her profit for that month
1 Lazy Days Inc. (LDI), sells hammocks. Revenue and cost information is given below: Sales Price 3. TL 30 Unit Variable Cost 20 Annual Fixed Operating Expenses 47,500 Required: a) Determine the sales volume in units and TL amount that would be required to attain a TL 12,500 profit. Verify your answer by preparing an income statement using the contribution margin format. b) LDI is considering the implementation of a quality improvement program. The program will require a TL 2.50 increase in the variable cost per unit. To inform its customers of the quality improvements, the company plans to spend an additional TL 5,000 for advertising. Assuming that the improvement program will increase sales to a level that is 1,500 units above the amount computed in requirement a, should LDI proceed with plans to improve product quality? Support your answer by preparing a budgeted income statement. c) Determine the new break-even point volume of units and sales in TL as well as the margin of safety…
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