Question
Kat Coughin, owner of Flowers 4 You operates a local chain of forel shops. Each shop has its own delivery van. Instead of charging
Kat Coughin, owner of Flowers 4 You operates a local chain of forel shops. Each shop has its own delivery van. Instead of charging a flat delivery fee, Coughin warts to set the delivery fee based on the danceiver the flowers Coughin was 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 month (Click the icon to view the data] 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 16,500 miles 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 yw Use the operating cost equation you determined above to predict van operating costs at a volume of 16,500 miles The operating costs at a volume of 16,500 miles is
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