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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 months to estimate the
High-Low Method for Service Company Miss River 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 costi The activity base used by Miss River Railroad is a measure of railroad operating activity, termed "gross ton miles," which is the total number of tons multiplied by the miles moved Transportation Costs Gross-Ton Miles January $1,478,500 1,648,400 1,165,000 369,000 412,000 February March 267,000 April 1,580,400 399,000 321,000 May 1,325,500 June 1.699,400 434,000 Determine the variable cost per gross to me and the fixed costs, Round variable cost per unit to the nearest cent Variable cost Xper Gross-ton mile Feed cost Check Divide the difference between the highest and lowest transportation costs by the difference between the highest and lowest gross ton miles Multiply the variable cott the number of miles for a month Stact this variable cost from the months transportation cost
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