Question: 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

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 $536,200 252,000
February 597,800 281,000
March 422,500 182,000
April 573,200 272,000
May 480,700 219,000
June 616,300 296,000

Determine the variable cost per gross-ton mile and the total fixed cost.

Variable cost (Round to two decimal places.)
Total fixed cost

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