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 milles," which is the total number of tons multiplied by the miles moved Transportation Costs Gross-Ton Miles January $1,141,300 276,000 February 1,272,400 309,000 March 899,300 200,000 April 1,220,000 299,000 May 1,023,200 241,000 June 1,311,800 325,000 Determine the variable cost per gross-ton mile and the total foxed cost. Variable cost (Round to two decimal places.) per gross ton mile Total fixed cost 18,000,0 x TOM W Divide the difference between the highest and lowest transportation costs by the difference between the highest and lowest gross-ton miles. Multiply the variable unit cost by the number of gross-ton miles for a month. Subtract this variable cost from the month's transportation cost to arrive at the feed cost. The resulting amount should be the same for either the highest or lowest production month