E5-20 (Algo) Estimating Cost Behavior Using High-Low Method, Preparing Contribution Margin Income Statement [LO 5-3, 5-5] Anita Kaur runs a courier service in downtown Seattle. She charges clients $0.56 per mile driven. Anita has determined that if she drives 2,150 miles in a month, her total operating cost is $575. If she drives 3,250 miles in a month, her total operating cost is $751. 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 1,300 miles last month. (Assume this falls within the relevant range of operations). Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using the high-low method, determine Anita's variable and fixed operating cost components. Note: Round your cost per mile answer to 2 decimal places. Variable Cost per Mile Driven Fixed Cost

Can you help me with CVP Drill #14?

Through November, Cameron has received gross income of $130,500. For December, Cameron is considering whether to accept one more work engagement for the year. Engagement 1 will generate $9,730 of revenue at a cost to Cameron of $4,050, which is deductible for AGI. In contrast, engagement 2 will generate $7,100 of qualified business income (QBI), which is eligible for the 20 percent QBI deduction. Cameron files as a single taxpayer, and he did not contribute to charity during the year. Calculate Cameron's taxable income assuming he chooses engagement 1 and assuming he chooses engagement 2. Assume he has no itemized deductions. Description (1) Gross income before new work engagement (2) Income from engagement (3) Additional for AGI deduction (4) Adjusted gross income (6) Deduction for QBI Taxable income Engagement 1 Engagement 2

Assume Hairy-Cairy Salon, a hair styling salon in Matthews, NC, provides cuts, perms, and hairstyling services. Annual fixed costs are $225,000, and variable costs are 40 percent of sales revenue. Sales revenue totaled $450,000. Determine the margin of safety in sales dollars.

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How do I determine the company's total contribution margin, contribution margin per service call, and contribution margin ratio when 50 service calls are made in the month of June? Problem E21-23

can you help me with the last two questions, please

Due to erratic sales of its sole product-a high-capacity battery for laptop computers-PEM, Incorporated, has been experiencing financial difficulty for some time. The company's contribution formaet Income statement for the most recent month is given below Sales (12,600 units $30 per unit) Variable expenses Contribution margin Fixed expenses $ 378,000 226,800 151,280 160,200 Net operating loss $ (18,000) Required: 1. Compute the company's CM ratio and its break-even point in unit sales and dollar sales. 2. The president believes that a $6,600 Increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will increase unit sales and the total sales by $82,000 per month. If the president is right, what will be the Increase (decrease) in the company's monthly net operating Income? 3. Refer to the original dets. The sales manager is convinced that a 10% reduction in the selling price, combined with an increase of $39,000 in the monthly advertising…

V5

Joyce Murphy runs a courier service in downtown Seattle. She charges clients $0.62 per mile driven. Joyce has determined that if she drives 2,450 miles in a month, her total operating cost is $725. If she drives 3,550 miles in a month, her total operating cost is $857. Required: 1. Using the high-low method, determine Joyce's variable and fixed operating cost components. 2. Complete the contribution margin income statement for Joyce's service assuming she drove 1,600 miles last month. (Assume this falls within the relevant range of operations).