Refer to the information for Speedy Pete's above. Speedy Pete's controller wants to calculate the fixed and variable costs associated with its cutting-edge delivery service.

Speedy Pete's is a small start-up company that delivers high-end coffee drinks to large metropolitan office buildings via a cutting-edge motorized coffee cart to compete with other premium coffee shops. Data for the past 8 months were collected as follows:

Month Delivery Cost Number of Deliveries

May.....................$63,450.............................1,800

June.......................67,120.............................2,010

July.......................66,990.............................2,175

August...................68,020.............................2,200

September...............73,400.............................2,550

October..................72,850.............................2,630

November...............75,450.............................2,800

December...............73,300.............................2,725

Required:

Using the high-low method, calculate the fixed cost of deliveries, calculate the variable rate per delivery, and construct the cost formula for total delivery cost.