Kathy Woo, owner of Flower Paradise, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat delivery fee, Woo wants to set the delivery fee based on the distance driven to deliver the flowers. Woo 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:

Kathy Woo, owner of Flower Paradise, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat delivery fee, Woo wants to set the delivery fee based on the distance driven to deliver the flowers. Woo 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 Flower Paradise's cost equation for van operating costs. Use your results to predict van operating costs at a volume of 15,000 miles. Let's begin by determining the formula that is used to calculate the variable cost (slope). Data Table = Variable cost (slope) Now determine the formula that is used to calculate the fixed cost component. Month Miles Driven Van Operating Costs $5,200 = Fixed cost 15,400 January February March 17,900 $5,480 Use the high-low method to determine Flower Paradise's operating cost equation. (Round the variable cost to the nearest cent and the fixed cost to the nearest whole dollar.) 15,200 $4,980 y = $ x + $ April 15,800 Use the operating cost equation you determined above to predict van operating costs at a volume of 15,000 miles. May June $5,350 $5,620 $5,300 $4,800 16,900 16,000 14.500 The operating costs at a volume of 15,000 miles is $ July Print Done