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