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Karn Chen, owner of Flower Hour, openates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat
Karn Chen, owner of Flower Hour, openates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat delivery fee. Chen wants to set the delivery fee based on the distance driven to deliver the fowers Chen 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 cours. She has the following dala from the past seven months Click the icon to view the data) 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 15.500 m -COLD Let's begin by determining the formule that is used to calculate the variable cost slope) Varable cost sope) Now determine the formula that is used to calculate the fixed cost component Fixed cost Use the high-low method to determine Flower Hour's operating cost equation. (Round the variable cost to the nearest cent and the fixed e Use the operating cost equation you detamined above to predict van operating costs at a volume of 15.500 miles The operating cess at a volume of 15.500 miles is neat while dolar) Data table - (sl (slo Month Miles Driven Van Operating Costs January 15,800 $5,460 February .... 17,300 $5,680 March 14,600 $4,940 (Rou dollar April 16,000 $5,310 May 17,100 $5,830 ng cos June 15,400 $5,420 July 14,100 $4,880 Print Done
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