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Continental 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
Continental 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 Continental 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 $818,900 327,000 February 913,100 366,000 March 645,300 April 875,400 237,000 354,000 285,000 385,000 May 734,200 June 941,300 Determine the variable cost per gross-ton mile and the total fixed cost. Variable cost (Round to two decimal places.) per gross-ton mile Total fixed cost
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