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	$1,334,600		296,000
February	1,488,000		331,000
March	1,051,600		214,000
April	1,426,600		320,000
May	1,196,500		258,000
June	1,534,000		348,000

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

Variable cost (Round to two decimal places.)	$ fill in the blank _________________ per gross-ton mile
Total fixed cost	$ fill in the blank _________