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Kara Smith, owner of Flower Mode, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat

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Kara Smith, owner of Flower Mode, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat delivery foe, Smith wants to set the delivery fee based on the distance driven to deliver the flowers. Smith wants to separate the fored 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: (Click the icon to view the data) Use the high-low method to determine Flower Mode's cost equation for van operating costs. Use your results to predict van operating costs at a volume of 16,500 miles. Let's begin by determining the formula that is used to calculate the variable cost (slope). Variable cost (slope) i Data Table Month Miles Driven Van Operating Costs 15,900 $5,430 17,300 January February.... March... April .. May $5,740 $4,940 14,600 16,300 $5,270 $5,820 17,200 June... 15,200 $5,400 July. 14,300 $4,990 Print Done

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