eBook Show Me How Print tem High-Low Method for a Service Company 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. Gross-Ton Miles January February March April May Transportation Costs $588,700 247,000 656,400 276,000 463,900 179,000 629,300 268,000 527,800 215,000 676,700 291,000 June