High-Low Method for Service Company Miss River 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 Miss River 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 $795,400 254,000 February 886,900 284,000 March 626,800 184,000 April 850,300 275,000 May 713,200 221,000 June 914,300 299,000 Determine the variable cost per gross-ton mile and the fixed costs. Round variable cost per unit to the nearest cent. Variable cost -2.8 X per gross-ton mile Fixed cost Feedback Check My Work 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 miles for a month. Subtract this variable cost from the month's transportation cost