EX $20-8$ High$-$low method for a service company

Obj. $1$

Continental 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 Continental Railroad is a measure of railroad operating activity, termed "gross$-$ton miles," which is the total number of tons multiplied by the miles moved.

$\backslash$table$[[,$Transportation Costs,Gross$-$Ton Miles$],[$January$,$$$24,500,000,3,000,000$