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High - Low Method for Service Company Miss River Railroad decided to use the high - low method and operating data from the past six
HighLow Method for Service Company
Miss River Railroad 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 Miss River Railroad is a measure of railroad operating activity, termed "grossto
miles," which is the total number of tons multiplied by the miles moved.
Determine the variable cost per grosston mile and the fixed cost. Round variable cost per unit to the nearest cent.
Variable cost
$
per grosston mile
Fixed cost
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