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Kate Smith, owner of Flowers 4 You, operates a local chain of floral shops. Each shop has its own delivery van Instead of charging a flat delivery fee, Smith wants to set the desery fee based on the dance driven to deliver the flowers. Smith 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 con She has the owing data from the past seven months Click the icon to view the data.) Use the high-low method to determine Flowers 4 You's cost equation for van operating costs. Use your results to predict van operating costs at a volume of 16.000 miles Let's begin by determining the formula that is used to calculate the variable cost (slope) Change in cost . Change in volume Variable cost (slope) Now determine the formula that is used to calculate the fixed cost component Total operating cost Total variable cost Foxed cost Use the high-low method to determine Flowers 4 You's operating cost equation (Hound the variable cost to the nearest cent and the fixed cost to the nearest whole dolar) y xos Data Table Month Van Operating costs Miles Driven 16,500 $5,260 January... February March 18,500 $5,730 April May 16,100 17.100 17.500 15.800 15,500 $4,960 $5,420 $5.790 $5,300 $5.040 June July Print | Done

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