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 $1,396,000 354,000 February 1,556,500 429,000 March 1,100,000 278,000 April 1,492,300 416,000 May 1,251,600 334,000 June 1,604,600 452,000 Determine the vanable cost per gross-ton mile and the total fixed cost. Variable cost (Roundto two decimal places.) per gross-ton mile Total Fixed cost