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 $963,600 285,000 February 1,074,400 318,000 March 759,300 206,000 April 1,030,100 308,000 May 863,900 248,000 1,107,600 335,000 Determine the variable cost per gross-ton mile and the total fixed cost.