High-Low Method for a Service Company

Continental 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 Continental 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	$996,000		221,000
February	1,110,500		247,000
March	784,800		160,000
April	1,064,700		239,000
May	892,900		192,000
June	1,144,800		260,000

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

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