Homework Answers
1) variable cost per unit = Change in Cost/Change in Unit = (32120000-25100000)/(120000-80000) = 175.50 per unit
Fixed cost = 32120000-(120000*175.50) = 11060000
b) Total estimated cost = (115000*175.50)+11060000 = $31242500
2a) Variable cost per gross ton mile = (2700000-1440000)/(1000000-400000) = 2.1
Fixed cost = 2700000-(1000000*2.1) = 600000
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