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High - low method for a service company Sierra Railroad Inc. decided to use the high - low method and operating data from the past
Highlow method for a service company
Sierra Railroad Inc. decided to use the highlow 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 "grosston miles," which is the total number of tons multiplied by the miles moved.
tableTransportation Costs,GrossTon MilesJanuary$FebruaryMarchAprilMayJune
Determine the variable cost per grosston mile and the total fixed cost.
Variable cost If required, round to two decimal places. uarr per grosston mile
Total fixed cost
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