Kerri Rafferty, owner of flower Direct operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat delivery fee Rafferty wants to set the delivery fee based on the distance driven to deliver the flowers. Rafferty 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. Use the high low method to determine flower direct cost equation for Van operating costs. Use your results to predict van operating costs at a volume of 16,500 miles. Use the high low method to determine Flower Direct's operating cost equation. Use the operating cost equation you determine above to predict van operating costs at a volume of 16,500 miles.

Month Miles Driven Van Operating Costs January ..... 15,700 $5,350 opera February. .... 16,500 $5, 160 March. .. 14,500 $4,960 April . . . . 16,000 $5,320 May . . . 16,300 $5,500 and t June .. . . 15, 100 $5,050 July ..... . 14,000 $4,560