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	$790,100		371,000
February	881,000		415,000
March	622,600		269,000
April	844,600		402,000
May	708,400		323,000
June	908,200		437,000

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

Variable cost (If required, round to two decimal places.)	$fill in the blank 1	per gross-ton mile
Total fixed cost	$fill in the blank 2