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eBook 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
eBook 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 Rallroad 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 January February March April May June Show Me How $982,100 1,095,000 773,900 1,049,900 880,500 1,128,900 Gross-Ton Miles 314,000 351,000 227,000 339,000 273,000 369,000 Determine the variable cost per gross-ton mile and the fixed cost. Variable cost (Round to two decimal places.) Total fixed cost per gross-ton mile
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