Blowing Rock Railroad decided to use the high-low method and operating data from the past six months to estimate the...

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Blowing Rock 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 baseused by Blowing Rock 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 CostsGross-Ton Miles
January$1,241,700 301,000 
February1,384,400 336,000 
March978,400 218,000 
April1,327,300 326,000 
May1,113,200 262,000 
June1,427,200 354,000 

Determine the variable cost per gross-ton mile and the fixed cost.

Variable cost (Round to two decimal places.)$[removed] per gross-ton mile
Total fixed cost$[removed]
 
    • 11 years ago
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