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
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ISBN:9781337912020
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Chapter6: Cost-volume-profit Analysis
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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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