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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

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.

Transportation Costs Gross-Ton Miles
January $627,400 279,000
February 699,600 312,000
March 494,400 202,000
April 670,700 302,000
May 562,500 243,000
June 721,200 328,000

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

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

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