Question: a. Determine the variable cost per unit and the fixed cost. Based on part (a), estimate the total cost for 60,000 units of production. E11-8

a. Determine the variable cost per unit and the fixed cost.

a. Determine the variable cost per unit and the fixed cost. Based on part (a), estimate the total cost for 60,000 units of production. E11-8 High-low method for service company Missoula Railroad decided to use the high-low method and operating data from the past siv months to estimate the fixed and variable components of transportation costs. The activith base used by Missoula Railroad is a measure of railroad operating activity, termed "gross-ton miles," which is the total number of tons multipltied by the miles moved. January February March April May June Transportation Costs $1,575,000 2,095,800 1,675,000 1,800,000 1,426,600 2,050,000 Gross-Ton Miles 125,000 180,000 136,000 150,000 110,000 175,000 Determine the variable cost per gross-ton mile and the fixed cost

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