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	$697,200		265,000
February	777,400		296,000
March	549,400		192,000
April	745,300		287,000
May	625,100		231,000
June	801,400		312,000

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