Kallie Smith, owner of Flowers 4 You, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat delivery fee, Smith wants to set the delivery fee based on the distance driven to deliver the flowers. 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:

Use the high-low method to determine Flowers 4 You's cost equation for van operating costs. Use your results to predict van operating costs at a volume of 17,000 miles.

X Data Table 1 Month Miles Driven Van Operating Costs $5,260 January. 16,500 $5,730 February. 18,500 $4,960 March 16,100 $5,420 April 17,100 $5,790 May. 17,500 $5,300 June 15,800 $5,040 July. 15,500 . . Let'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 method to determine Flowers 4 You's operating cost equation. (Round the variable cost to the nearest cent and the fixed cost to the nearest whole dollar.) y = $ Use the operating cost equation you determined above to predict van operating costs at a volume of 17,000 miles. The operating costs at a volume of 17,000 miles is $ Let'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 determine Flowers 4 You's operating cost equation. (Round the variable cost to the nearest cent and the fixed cost to the nearest whole dollar.) Change in cost Change in volume Highest cost tion you determined above to predict van operating costs at a volume of 17,000 miles. Highest volume Lowest cost ume of 17,000 miles is $ Lowest volume Total operating cost Total variable cost