High-Low Method for Service Company - ACCOUNTING

High Low Method for Service Company Patriot 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 Patriot 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 $1,666,000 539,000 February 1,460,200 607,600 March 1,255,000 475,000 April 1,421,000 588,000 May 1,288,000 504,000 June 1,750,000 750,000 Determine the variable cost per gross-ton mile and the total fixed cost. Variable cost (If required, round to two decimal places.) $ per gross-ton mile Total fixed cost $