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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 $547,800 243,000
February 610,700 272,000
March 431,600 176,000
April 585,500 263,000
May 491,100 212,000
June 629,600 286,000

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

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