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	$1,245,000		332,000
February	1,388,100		371,000
March	981,000		240,000
April	1,330,800		359,000
May	1,116,200		289,000
June	1,431,000		390,000

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