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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
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 miles, which is the total number of tons multiplied by the miles moved.
Month | Transportation Costs | Gross-Ton Miles |
---|---|---|
January | $1,172,800 | 347,000 |
February | 1,307,600 | 388,000 |
March | 924,100 | 251,000 |
April | 1,253,600 | 375,000 |
May | 1,051,400 | 302,000 |
June | 1,348,000 | 408,000 |
Determine the variable cost per gross-ton mile and the total fixed cost. Variable cost (If required, round to two decimal places.) fill in the blank 1 of 2$ per gross-ton mile Total fixed cost fill in the blank 2 of 2$
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