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help asap please Kristen Smith, owner of Rose Red, operates a local chain of foral shops. Each shop has its own delivery van. Instoad of
help asap please
Kristen Smith, owner of Rose Red, operates a local chain of foral shops. Each shop has its own delivery van. Instoad of charging a flat delivery foe, Smith wants to sot the delivery foe based on the distance driven to deliver the flowors. Smith 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: EEB(Click the icon to view the data.) Use the high-low mothod to determine Rose Red's cost equation for van operating costs, Use your results to predict van operalting costs at a volume of 16,000 miles Lot's begin by determining the formula that is used to calculate the variable cost (slope). Variable cost (slope) Now determine the formula that is used to calculate the fixed cost component Fixed cost Use the high low mothod to detormine Rose Red's operaling cost equation (Round the variable cost to the narest cent and the ints Use the operating cost equation you determined above to predict van operating costs at a volume of 16,000 miles Tho operating oosts at a volume of 16,000 miles is $ [ l8 as the folowing data from the past seven months: Data Table ts at a volun Van Operating Costs $5,480 $5,400 $4,950 $5,270 $5,740 $5,440 $4,680 Month Miles Driven ..16,400 17,500 .15,000 16,100 17,300 15,600 14,500 January February... March. fixed cost to the nea April May June. July 6 Print Done Step by Step Solution
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