High-Low Method for a Service Company Boston Railroad decided to use the high-low methed and operating data from the past six months to estimate the foxed and variable components of transportation costs. The activity base used by Boston Ralroad is a measure of railroad operating activity, termed "gross-ton miles, which is the total number of tons multiplied by the miles moved anuary February March April May une Determine the variable cost per grosston mile and the fixed cost Variable cost (Round to two decimal places) Total fixed cost Transportation Costs $996,000 1,110,500 784,800 1,064,700 892,900 1,144,800 Gress-Ton Miles 265,000 296,000 192,000 287,000 231,000 312,000 ss7x per gros ton mile 130,625 X ovwde the diference between the highe ind toesttrenstaetion costs oy the offerense between te higrest and lowest gross ton mies, Multpty the varable unt cost by the number Drvide the difference between the of gross-ton miles for a month. Subtract this variable cost from the month's transportation cost to amve at the fixed cost The resuting amount should be the same for ether the highest or lowest production month