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eBook High-low method for a service company Sierra Railroad Inc. decided to use the high-low method and operating data from the past six months to
eBook High-low method for a service company Sierra Railroad Inc. 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 Sierra Railroad is "gross-ton miles," which is the total number of tons multiplied by the miles moved. Show Me How Transportation Costs January February March April May June Gross-Ton Miles $831,900 927,500 655,500 889,300 745,800 956,200 Determine the variable cost per gross-ton mile and the total fixed cost. Variable cost (If required, round to two decimal places.) $ Total fixed cost $ 214,000 239,000 155,000 232,000 186,000 252,000 per gross-ton mile
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