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Kathy Smith, owner of Flower Power, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat
Kathy Smith, owner of Flower Power, 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 the van's operating costs to get a better idea of how delivery distance affects these
costs. Here are the data from the past seven months:
View the data.
Use the highlow method to determine Flower Power's cost equation for van operating costs. Use your results to predict van
operating costs at a volume of miles.
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