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 Costs Gross-Ton Miles 225,000 252,000 163,000 244,000 196,000 265,000 Determine the variable cost per gross-ton mile and the total fixed cost. January February March April May June $536,200 597,800 422,500 573,200 480,700 616,300 Variable cost (Round to two decimal places.) Total fixed cost

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 Costs Gross-Ton Miles 225,000 252,000 163,000 244,000 196,000 265,000 Determine the variable cost per gross-ton mile and the total fixed cost. January February March April May June $536,200 597,800 422,500 573,200 480,700 616,300 Variable cost (Round to two decimal places.) Total fixed cost

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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