=+Ell-8 High-low method for service company Obj 1 y Fixed cost, Great Plains Railroad decided to use the high-low method and operating data from the past six months to estimate the fixed and variable components oftransportation costs. The activity base used by Great Plains Railroad is a measure ofrailroad operating activity, termed “gross-ton miles,” which is the total number oftons multiplied by the miles moved.

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~&fo Transportation Costs Cross-Ton Miles January $1,050,000 285,000 February 1,150,000 325,000 March 1,350,000 400,000 April 1,000,000 250,000 May 1,225,000 375,000 June 1,600,000 450,000