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 the 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:

Month Kilometres Driven Van Operating Costs

January ......................... 15,800 $5,460

February ....................... 17,300 5,680

March ........................... 14,600 4,940

April ............................. 16,000 5,310

May .............................. 17,100 5,830

June ............................. 15,400 5,420

July .............................. 14,100 4,880

February and May are always Flower Powers biggest months because of Valentines Day and Mothers Day, respectively.

Use the high-low method to determine Flower Powers cost equation for van operating costs. Use your results to predict van operating costs at a volume of 15,000 kilometers. SHOW ALL WORK