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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 six months to
High-low method for a service company Sierra Railroad Inc. 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 Sierra Railroad is "gross-ton milles," which is the total number of tons multiplied by the miles moved. January Transportation Costs Gross-Ton Miles $790,100 263,000 February 881,000 294,000 March 622,600 190,000 April 844,600 284,000 May 708,400 229,000 June 908,200 309,000 Determine the variable cost per gross-ton mile and the total fixed cost. Variable cost (If required, round to two decimal places.) s Total fixed cost per gross-ton mile
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