Question
Kerri Reynolds, owner of Flower Petal, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a
Kerri Reynolds, 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, Reynolds wants to set the delivery fee based on the distance driven to deliver the flowers. Reynolds 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 Petal's 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 Petal's operating cost equation. (Round the variable cost to the nearest cent and the fixed cost to the nearest whole dollar) Use the operating cost equation you determined above to predict van operating costs at a volume of 16,500 miles. (Round your answer to the nearest whole dollar.) The operating costs at a volume of 16,500 miles is Data table Month January...... February.... 17,500 Miles Driven Van Operating Costs 15,500 $5,400 $5,350 March 14,400 $4,080 April 16.400 $5,280 May 16.900 $5,580 June 15.300 $5.010 July 13,500 $4,590 Printi Done Time Remaining: 00:28:49 Next
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