Problem #3 In the rail transportation business, the critical activity measure for business activity is ton miles, that is, a measure of miles that tons of cargo have been transported. 3a) Assuming the following data for the Lehigh Valley Railroad Company, use the high-low method to determine variable cost per ton mile and fixed costs for the company. 3b) Express the specific total cost equation for the railroad mathematically. 3c) Calculate the RR's total costs for September, assuming ton miles of 525,000. Total Costs ($000) Month Ton Miles February 265,000 26,830 March 325,000 30,750 April 315,000 28,560 May 450,000 36,270 June 540,000 39,240 July 505,000 37,920 August 550,000 41,490

Problem #3 In the rail transportation business, the critical activity measure for business activity is ton miles, that is, a measure of miles that tons of cargo have been transported. 3a) Assuming the following data for the Lehigh Valley Railroad Company, use the high-low method to determine variable cost per ton mile and fixed costs for the company. 3b) Express the specific total cost equation for the railroad mathematically. 3c) Calculate the RR's total costs for September, assuming ton miles of 525,000. Total Costs ($000) Month Ton Miles February 265,000 26,830 March 325,000 30,750 April 315,000 28,560 May 450,000 36,270 June 540,000 39,240 July 505,000 37,920 August 550,000 41,490

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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Subject : Accounting
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