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E6-26A please help with this question and show work so I know how to do it thank you E6-26A (similar to) Question Help * Kim
E6-26A please help with this question and show work so I know how to do it thank you
E6-26A (similar to) Question Help * Kim Chen, owner of Flower Mode, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat delivery fee, Chen wants to set the delivery fee based on the distance driven to deliver the flowers. Chen 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.) Use the high-low method to determine Flower Mode's cost equation for van operating costs. Use your results to predict van operating costs at a volume of 14,500 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 - Fixed cost Use the high-low method to determine Flower Mode ing cost equation. (Round the variable cost to the nearest cent and the fxed cost to the nearest whole dollar.) Data Table Month Miles Driven 15,800 17,300 14,600 16,000 17,100 15,400 14,100 Van Operating Costs $5,460 $5,680 $4,940 S5,310 $5,830 $5,420 $4,880 January March April June July . Print Done Enter any number in the edit fields and then click CheckStep by Step Solution
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