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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
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 $757,200 356,000 February 844,300 398,000 March 596,700 258,000 April 809,500 385,000 May June < 678,900 310,000 870,400 419,000 Determine the variable cost per gross-ton mile and the total fixed cost. Variable cost (Round to two decimal places.) Total fixed cost per gross-ton mile
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