Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help me solve : *Use the high-low method to determine Flower Mode's operating cost equation. *Use the operating cost equation you determined above to

please help me solve :
*Use the high-low method to determine Flower Mode's operating cost equation.

*Use the operating cost equation you determined above to predict van operating costs at a volume of 15,000 miles.

image text in transcribed
Kaitlyn Woo, owner of Flowers 4 You, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat delivery fee, Woo wants to set the delivery fee based on the distance driven to deliver the flowers. Woo wants to separate the foxed 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 Flowers 4 You'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 dotermining the formula that is used to calculate the variable cost (slope). Change in cost C Change in volume Now determine the formula that is used to calculate the fixed cost component. Total operating cont * Total variable cost Use the high-low method to determine Flowers 4 You's operating cost equation. (Round the variable cost to the nearest cent and the fixed cost to the nearest whole dollar.) y= Datatable

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting And Analysis In Multinational Enterprises

Authors: H. Peter Holzer, Hanns Martin W. Schoenfeld

1st Edition

0899250874, 978-0899250878

More Books

Students also viewed these Accounting questions

Question

Write about how the Internet is helping business.

Answered: 1 week ago

Question

6. Conclude with the same strength as in the introduction

Answered: 1 week ago

Question

7. Prepare an effective outline

Answered: 1 week ago