7.

8.

High-Low Method Tashiro Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows: Units Produced Total Costs 2,480 $174,720 880 112,320 1,550 152,130 a. Determine the variable cost per unit and the total fixed cost. Variable cost (Round to two decimal places.) per unit Total fixed cost b. Based on part (a), estimate the total cost for 1,210 units of production. Total cost for 1,210 units: 101 a Boston 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 Boston Railroad is a measure of railroad operating activity, termed "gross-ton miles," which is the total number of tons multiplied b the miles moved. Transportation Costs Gross-Ton Miles January 246,000 $644,900 719,100 February 275,000 March 508,200 178,000 April 689,400 266,000 May 578,200 214,000 June 741,300 289,000 Determine the variable cost per gross-ton mile and the total fixed cost. Variable cost (If required, round to two decimal places.) per gross-ton mile Total fixed cost