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	$1,056,300				367,000
February	1,177,700				410,000
March	832,300				266,000
April	1,129,100				397,000
May	947,000				320,000
June	1,214,100				432,000

Determine the variable cost per gross-ton mile and the fixed costs. Round variable cost per unit to the nearest cent.

Variable cost	$fill in the blank 1 per gross-ton mile
Fixed cost	$fill in the blank 2