High$-$Low Method for Service Company

Miss River 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 Miss River Railroad is a measure of railroad operating activity, termed "gross$-$to

miles," which is the total number of tons multiplied by the miles moved.

Determine the variable cost per gross$-$ton mile and the fixed cost. Round variable cost per unit to the nearest cent.

Variable cost

$

per gross$-$ton mile

Fixed cost