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7. High-Low Method for a Service Company Boston Railroad decided to use...

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Accounting

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High-Low Method for a Service Company Boston 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 Boston 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 $1,340,100 383,000 February 1,494,200 428,000 March 1,056,000 277,000 April 1,432,600 414,000 May 1,201,500 333,000 June 1,540,400 450,000 Determine the variable cost per gross-ton mile and the fixed cost. Variable cost (Round to two decimal places.) per gross-ton mile Total fixed cost

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