20.000 429,000 High-Low Method for a Service Company Boston Railroad decided to use the high-low method and operating data from the past six months to estimate the fixed and variable components of transportation costs. The activity base used by Boston Railroad is a measure of railroad operating activity, termed "gross-ton miles," which is the total number of tons multiplied by the miles moved. Transportation Costs Gross-Ton Miles January $1,492,300 *****2.500 30.000 384,000 February March 1,175,900 278,000 April 1,595,200 May way 1,337,900 334,000 June 1,715,300 452,000 Determine the variable cost per gross-ton mile and the fixed cost. Variable cost (Round to two decimal places.) 2.10 x per gross-ton mile Total fixed cost 600,000 x 1.663,800 Contribution Margin and Contribution Margin Ratio For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions): Sales $41,300 $16,936 10,400 Food and packaging Payroll Occupancy (rent, depreciation, etc.) General, selling, and administrative expenses 6,724 6,000 $40,060 Income from operations $1,240 - Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses. a. What is Wicker Company's contribution margin? Round to the nearest million. (Give answer in millions of dollars.) $ million b. What is Wicker Company's contribution margin ratio? Round to one decimal place. % c. How much would income from operations increase if same-store sales increased by $2,500 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million. $ million - Break-Even Sales Currently, the unit selling price of a product is $200, the unit variable cost is $160, and the total fixed costs are $312,000. A proposal is being evaluated to increase the unit selling price to $220. a. Compute the current break-even sales (units). units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased to the proposed $220, and all costs remain constant. units