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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

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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. Gross-Ton Miles Transportation Costs $784,000 January 241,000 February 874,200 269,000 March 617,800 April 838,100 174,000 260,000 209,000 283,000 May 702,900 June 901,200 Determine the variable cost per gross-ton mile and the total fixed cost. Variable cost (Round to two decimal places.) 2.6 per gross-ton mile 4 Total fixed cost 0

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