Continental 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 Continental 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 Gross-Ton Costs Miles January $1,022,500 340,000 February 1,140,000 380,000 March 805,700 246,000 April 1,093,000 368,000 May 916,700 296,000 June 1,175,300 400,000 Determine the variable cost per gross-ton mile and the total fixed cost. Variable cost (Round to two decimal per gross-ton places.) mile Total fixed cost $4

Continental 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 Continental 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 Gross-Ton Costs Miles January $1,022,500 340,000 February 1,140,000 380,000 March 805,700 246,000 April 1,093,000 368,000 May 916,700 296,000 June 1,175,300 400,000 Determine the variable cost per gross-ton mile and the total fixed cost. Variable cost (Round to two decimal per gross-ton places.) mile Total fixed cost $4

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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(J)
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