Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Melody Leigh, owner of Broadway Floral, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat
Melody Leigh, owner of Broadway Floral, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat delivery fee, Leigh wants to set the delivery fee based on the distance driven to deliver the flowers. Leigh 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 Broadway Floral'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 Broadway Floral's operating cost equation. (Round the variable cost to the nearest cent and the fixed cost to the nearest whole dollar.) y=$ O x +$ 0 Month Mlles Driveh vah Uperating Costs Januar.y. February............... March ................. 15,500 17,400 15,400 16,300 16,500 15,200 14,400 $5,390 $5,280 $4,960 $5,340 $5,450 April .... A PLIL . . . . . . . . . . . . . . . . . a v . . . . . . . . . . . . . . . . . . . June.................. $5,230 July................. $4,680
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started