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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 CostsGross-Ton MilesJanuary$807,500 307,000 February900,400 343,000 March636,300 222,000 April863,200 332,000 May724,000 267,000 June928,200 361,000
Determine the per gross-ton mile and the .
Variable cost (Round to two decimal places.)$ per gross-ton mileTotal fixed cost$
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