Alice Jungemann, owner of Flower Power, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat delivery fee, Jungemann wants to set the delivery fee based on the distance driven to deliver flowers, Jungemann 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 seven months: (Click the icon to view the data.) February and May are always Flower Power's biggest months because of Valentine's Day and Mother's Day, respectively. Use the high-low method to determine Flower Power's cost equation for van operating costs. Use your results to predict van operating costs at a volume of 15,000 kilometres. Start by determining the formula that is used to calculate the variable cost (slope). Choose the correct answer below. O A. Change in volume + Change in cost = Variable cost (slope) O B. Change in cost + Change in volume = Variable cost (slope) X O C. Lowest cost + Lowest volume = Variable cost (slope) Data table O D. Highest cost + Highest volume = Variable cost (slope) O E. Total operating cost - Total variable cost = Variable cost (slope) Month Kilometres Driven Van Operating Costs Now determine the formula that is used to calculate the fixed cost component. Choose the correct answer below. January .. . . . ... 15,800 $5,460 O A. Change in cost + Change in volume = Fixed cost February 17,300 5.680 O B. Total operating cost - Total variable cost = Fixed cost March 14,600 4,940 O C. Change in volume + Change in cost = Variable cost (slope) April 16,000 5,310 O D. Highest cost - lowest cost = Fixed cost May 17,100 5,830 O E. Highest volume - lowest volume = Fixed cost June 15,400 5,420 14, 100 4,880 Use the high-low method to determine Flower Power's operating cost equation. (Round the variable cost to the nearest cent and the fix July ....... ....... y=$ x+ $ Use the operating cost equation you determined above to predict van operating costs at a volume of 15,000 kilometres. The operating costs at a volume of 15,000 kilometres is $. Print Done Time Remaining: 02:11:59 Next