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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

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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 fixed and variable components of transportation costs. The activity base used by Continental Railroad is a measure of railroad operating activity, termed "gross-ton miles," which is the total number of tons multiplied by the miles moved. Gross-Ton Miles January 252,000 Transportation Costs $1,103,900 1,230,700 869,800 February 281,000 March 182,000 April 1,180,000 272,000 May 989,700 219,000 Dune 1,268,800 296,000 Determine the variable cost per gross-ton mile and the total fixed cost. Variable cost (Round to two decimal places.) Total fixed cost per gross-ton mile Sales Mix and Break-Even Sales Dragon Sports Inc, manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $219,600, and the sales mix is 80% bats and 20% gloves. The unit selling price and the unit variable cost for each product are as follows: Products Unit Selling Price Unit Variable Cost Bats $50 $40 Gloves 130 80 a. Compute the break-even sales (units) for the overall enterprise product, E. units b. How many units of each product, baseball bats and baseball gloves, would be sold at the break-even point? Baseball bats units Baseball gloves units

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