Kathy Chen, 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, Chen wants to set the delivery fee based on the distance driven to deliver the flowers. 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 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 Flowers 4 You's cost equation for van operating costs. Use your results to predict van operating costs at a volume of 14,500 miles. sal- $58 $29 e t gir Let's begin by determining the formula that is used to calculate the variable cost (slope). Change in volume =Variable cost (slope) Change in cost Now determine the formula that is used to calculate the fixed cost component. 000 La eans Total operating cost Total variable cost = 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.) min y = Data table Month Miles Driven Van Operating Costs January...... 15,900 $5,420 February..... 18,000 $5,460 March ..... 15,300 $5,100 April ... 16,300 $5,290 May. 17,000 $5,520 June 15,700 $5,150 July. 15,000 $4,950