Alice Rafferty, owner of Rose Ready, 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 seven months: (Click the icon to view the data.) February and May are always Rose Ready's biggest months because of Valentine's Day and Mother's Day, respectively. Use the high-low method to determine Rose Ready's cost equation for van operating costs. Use your results to predict van operating costs at a volume of 16,000 kilometres. 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 Fixed cost Use the high-low method to determine Rose Ready's operating cost equation (Round the variable cost to the nearest cent and the fixed cost to the nearest whole dollar.) y=$1x+$ Use the operating cost equation you determined above to predict van operating costs at a volume of 16,000 kilometres. The operating costs at a volume of 16,000 kilometres is $1. Month Kilometres Driven Van Operating Costs 16,400 $5,480 January February.. March... 17,500 5,400 15,000 4,950 April .. 16,100 5,270 May 17,300 5,740 June... 15,600 5,440 July... 14,500 4,680