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HighLow 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
HighLow 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 \"grosston miles,\" which is the total number of tons multiplied by the miles moved. Transportation Costs Gross-Ton Miles January $672,900 283,000 February 750,200 316,000 March 530,200 205,000 April 719,300 306,000 May 603,300 246,000 ' June 773,400 333,000 Determine the variable cost per gross-ton mile and the fixed cost Variable cost (Round to two decimal places.) $:] per grosston mile Total fixed cost $:]
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