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High-Low Method for a Service Company Continental Railroad decided to use the high-low method and operating data from the past six months to estimate the
High-Low Method for a Service Company Continental Railroad decided to use the high-low method and operating data from the past six months to estimate the fixed and variable components activity base used by Continental Railroad is a measure of railroad operating activity, termed "gross-ton miles, "which is the total number of tons multi Determine the variable cost per gross-ton mile and the total fixed cost. Variable cost (Round to two decimal places.) Total fixed cost Feedback Check My Work Divide the difference between the highest and lowest transportation costs by the difference between the highest and lowest gross-ton miles. Multiply t by the number of gross-ton miles for a month. Subtract this variable cost from the month's transportation cost to arrive at the fixed cost. The resulting the same for either the highest or lowest production month
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