Russell Preston delivers parts for several local auto parts stores. He charges clients $0.85 per mile driven. Russell has determined that if he drives 2,500 miles in a month, his average operating cost is $0.50 per mile. If he drives 3,500 miles in a month, his average operating cost is $0.40 per mile. Russell has used the high-low method to determine that his monthly cost equation is total cost = $980 + $0.15 per mile. Required: 1. Determine how many miles Russell needs to drive to break even. 2. Assume Russell drove 1,600 miles last month. Without making any additional calculations, determine whether he earned a profit or a loss last month. 3. Determine how many miles Russell must drive to earn $1,400 in profit. 4-a. Prepare a contribution margin income statement assuming Russell drive 1,600 miles last month. 4-b. Use the information provided in Req 4a to calculate Russell’s degree of operating leverage.