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EDUUN Show Me How High-Low Method for a Service Company Boston Railroad decided to use the high-low method and operating data from the past six
EDUUN Show Me How 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 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 $1,294,700 345,000 February 1,443,600 386,000 March 1,020,200 250,000 April 1,384,000 374,000 May 1,160,800 300,000 406,000 June 1,488,200 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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