Miss River 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 Miss River 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 $6,500,000 2,500,000 February 6,187,500 2,250,000 March 6,980,000 2,940,000 April 7,500,000 3,400,000 May 8,775,000 4,500,000 June 8,200,000 4,000,000 Determine the variable cost per gross-ton mile and the fixed costs. Round variable cost per unit to the nearest cent. Variable cost $ per gross-ton mile Fixed cost $
Miss River 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 Miss River 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 $6,500,000 2,500,000 February 6,187,500 2,250,000 March 6,980,000 2,940,000 April 7,500,000 3,400,000 May 8,775,000 4,500,000 June 8,200,000 4,000,000 Determine the variable cost per gross-ton mile and the fixed costs. Round variable cost per unit to the nearest cent. Variable cost $ per gross-ton mile Fixed cost $
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 8E
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Miss River 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 Miss River 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 | $6,500,000 | 2,500,000 | |||||
February | 6,187,500 | 2,250,000 | |||||
March | 6,980,000 | 2,940,000 | |||||
April | 7,500,000 | 3,400,000 | |||||
May | 8,775,000 | 4,500,000 | |||||
June | 8,200,000 | 4,000,000 |
Determine the variable cost per gross-ton mile and the fixed costs. Round variable cost per unit to the nearest cent.
Variable cost | $ per gross-ton mile |
Fixed cost | $ |
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