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 $732,000 217,000 February 816,200 242,000 March 576,800 157,000 April 782,500 235,000 May 656,300 189,000 June 841,400 255,000 Determine the variable cost per gross-ton mile and the fixed costs. Round variable cost per unit to the nearest cent. Variable cost Fixed cost 2.7 per gross-ton mile 151,450 X