Patriot 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 Patriot Railroad is a measure of railroad operating activity, termed gross ton miles, which is the total number of tons multiplied by the miles moved Determine the variable cost per gross ton mile and the total fixedcost January February March April May June Transportation Costs $1,666,000 1,460,200 1,255,000 1,421,000 1,288,000 1,750,000 Gross Ton Miles 539,000 607,600 475,000 588,000 504,000 750,000

Question: Patriot 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

Patriot 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 Patriot Railroad is a measure of railroad operating activity, termed â€œgross- ton miles,â€ which is the total number of tons multiplied by the miles moved.

Determine the variable cost per gross- ton mile and the total fixedcost.

January February March April May June Transportation Costs $1,666,000 1,460,200 1,255,000 1,421,000 1,288,000 1,750,000 Gross-Ton Miles 539,000 607,600 475,000 588,000 504,000 750,000

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