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Kerri Meyer, owner of Flower Petal, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat
Kerri Meyer, owner of Flower Petal, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat delivery fee, Meyer wants to set the delivery fee based on the distance driven to deliver the flowers. Meyer 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 high-low method to determine Flower Petal'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). Now determine the formula that is used to calculate the fixed cost component. Use the high-low method to determine Flower Petal's operating cost equation. (Round the variable cost to the nearest cent and the fixed cost to the nearest whole dollar.) y=x+ Use the operating cost equation you determined above to predict van operating costs at a volume of 15,000 miles. The operating costs at a volume of 15,000 miles is Change in cost Change in volume Highest cost Highest volume Lowest cost Lowest volume Total operating cost Total variable cost Data
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