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George Sanders operates a home remodeling business. Sanders uses several vehicles in performing work at various job sites. Instead of charging customers a flat fee

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George Sanders operates a home remodeling business. Sanders uses several vehicles in performing work at various job sites. Instead of charging customers a flat fee for vehicle usage during remodeling jobs, Sanders wants to set the transportation fee based on the distance actually driven to and from the job sites. Sanders wants to separate the fixed and variable portions of his van operating costs so that he has a better idea how driving distance affects these costs. He has the following data from the past seven months for all vehicles used. Month March April May June July August September Requirement: Use the high-low method to determine the company's cost equation for van operating costs. Then, predict van operating cost if 18,000 miles were driven by all vehicles. Miles Driven 15,800 17,300 14,600 16,000 17,100 15,400 14,100 Van Operating Costs $5,460 $5,740 $4,880 $5,310 $5,840 $5,420 $4,940

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