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	$741,200		312,000
February	826,300		349,000
March	584,000		226,000
April	792,300		338,000
May	664,500		272,000
June	851,900		367,000

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

Variable cost (Round to two decimal places.)	$fill in the blank
Total fixed cost	$fill in the blank