High-Low Method for a Service Company Boston 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 Boston 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 $1,235,600 340,000 February 1,377,600 380,000 March 973,600 246,000 April 1,320,800 368,000 May 1,107,800 296,000 < June 1,420,200 400,000 Determine the variable cost per gross-ton mile and the total fixed cost. Variable cost (Round to two decimal places.) Total fixed cost 2.90 per gross-ton mile 260,000 X