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 $1,045,700 279,000 February 1,165,900 312,000 March 824,000 202,000 April 1,117,900 302,000 May 937,600 243,000 June 1,202,000 328,000 Determine the variable cost per gross-ton mile and the fixed cost. Variable cost (Round to two decimal places) 3.31 X per gross-ton mile Total fixed cost 133,270 X