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44-Alice Rafferty, owner of FlowerDirect, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat deliveryfee, Rafferty wants to set the delivery fee based on the distance driven to deliver the flowers. Rafferty wants to separate the fixed and variable portions of her van operating costs so that she has a better idea how delivery distance affects these costs. She has the following data from the past 7months:

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Alice Rafferty, owner of Flower Direct, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat delivery fee, Rafferty wants to set the delivery fee based on the distance driven to deliver the flowers. Rafferty wants to separate the fixed and variable portions of her van operating costs so that she has a better idea how delivery distance affects these costs. She has the following data from the past 7 months: (Click the icon to view the data.) February and May are always Flower Direct's biggest months because of Valentine's Day and Mother's Day, respectively. Use the high-low method to determine Flower Direct's cost equation for van operating costs. Use your results to predict van operating costs at a volume of 15,000 kilometres. Let's begin by determining the formula that is used to calculate the variable cost (slope). i Data Table - X Variable cost (slope) Now determine the formula that is used to calculate the fixed cost component. Month Kilometres Driven Van Operating Costs Fixed cost January 15,500 $5,400 Use the high-low method to determine Flower Direct's operating cost equation. (Round the variable cost to the nearest cent and the fixed cost to the nearest whole dollar.) February. 17,500 5,350 y = $ ] x + $ [ March 14,400 4,980 April 16,400 5,280 Use the operating cost equation you determined above to predict van operating costs at a volume of 15,000 kilometres. May . 16,900 5,580 The operating costs at a volume of 15,000 kilometres is $ June . 15,300 5,010 July. . . . . . . . . . . . . . . . . 13,500 4,590 Print Done

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