Managerial Accounting: E4-8 Blowing Rock Railroad decided to use the high-low method

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Managerial Accounting
Ex4-8 High-low method for service company
Blowing Rock 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 Blowing Rock 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 760,000 275,000
February 850,000 310,000
March 600,000 200,000
April 810,000 300,000
May 680,000 240,000
June 875,000 325,000

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