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 by the miles moved.

	Transportation Costs		Gross-Ton Miles
January	$551,900		232,000
February	615,400		259,000
March	434,900		168,000
April	590,000		251,000
May	494,800		202,000
June	634,400		273,000

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

Variable cost (Round to two decimal places.)	?
Total fixed cost	?

Ziegler 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
2,730			$280,800
4,210			409,030
6,630			436,800

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

Variable cost: (Round to the nearest dollar.)	$?
Total fixed cost:	$?

b. Based on part (a), estimate the total cost for 3,370 units of production.?

Beck Inc. and Bryant Inc. have the following operating data:

	Beck Inc.		Bryant Inc.
Sales	$375,800		$1,000,000
Variable costs	150,800		600,000
Contribution margin	$225,000		$400,000
Fixed costs	150,000		200,000
Income from operations	$75,000		$200,000

a. Compute the operating leverage for Beck Inc. and Bryant Inc. If required, round to one decimal place.

Bryant Inc. Beck Inc.

b. How much would income from operations increase for each company if the sales of each increased by 15%? If required, round answers to nearest whole number.

	Dollars	Percentage
Beck Inc.			%
Bryant Inc.		f	%