Kim Chen, owner of Flower Mode, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat

delivery fee, Chen wants to set the delivery fee based on the distance driven to deliver the flowers. Chen 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 Mode's cost equation for van operating costs. Use your results to predict van operating costs

at a volume of $16,000$ 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.

Data table