Question
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
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 CostsGross-Ton MilesJanuary$833,900303,000February929,700338,000March657,100219,000April891,400328,000May747,600263,000June958,500356,000
Determine thevariable costper gross-ton mile and thefixed cost.
Variable cost (Round to two decimal places.)$fill in the blank 1
per gross-ton mileTotal fixed cost$fill in the blank 2
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