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Kaitlyn Coughlin, owner of Flower Hour, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat

Kaitlyn Coughlin, owner of Flower Hour, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat delivery fee, Coughlin wants to set the delivery fee based on the distance driven to deliver the flowers. Coughlin 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:

Use the high-low method to determine Flower Hour's cost equation for van operating costs. Use your results to predict van operating costs at a volume of 16,500 miles.

Month Miles Driven Van Operating Costs
January 15,500 $5,400
February 17,500 $5,350
March 14,400 $4,980
April 16,400 $5,280
May 16,900 $5,580
June 15,300 $5,010
July 13,500 $4,590

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