Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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
image text in transcribed
image text in transcribed
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

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Audit Of War The Illusion And Reality Of Britain As A Great Nation

Authors: Correlli Barnett

1st Edition

0571280188, 978-0571280186

More Books

Students also viewed these Accounting questions

Question

The amount of work I am asked to do is reasonable.

Answered: 1 week ago

Question

The company encourages a balance between work and personal life.

Answered: 1 week ago