Kerri Coughlin Flowers 4 You operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat delivery fee, Coughlin wants to set the delivery fee based on the distance driven to deliver the flowers.Coughlinwants 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:

Month	Miles Driven	Van Operating Costs
January. . . . . . . . . . . . . . .	16,500	$5,260
February. . . . . . . . . . . . . . .	18,500	$5,730
March. . . . . . . . . . . . . . . . .	16,100	$4,960
April. . . . . . . . . . . . . . . . . .	17,100	$5,420
May. . . . . . . . . . . . . . . . . .	17,500	$5,790
June. . . . . . . . . . . . . . . . . .	15,800	$5,300
July. . . . . . . . . . . . . . . . . . .	15,500	$5,040

Let's begin by determining the formula that is used to calculate the variable cost? (slope).

Change in cost

/

Change in volume

=

Variable cost (slope)

Now determine the formula that is used to calculate the fixed cost component.

Total operating cost

-

Total variable cost

=

Fixed cost

Use the? high-low method to determine

Flowers 4 YouFlowers 4 You?'s

operating cost equation. ?(Round the variable cost to the nearest cent and the fixed cost to the nearest whole? dollar.)

y = $

?

x + $ ?