The first 4 boxes have the same drop down options: change in cost change in volume highest cost highest volume lowest cost lowest volume Total operating cost Total variable cost

Kelly Tran, 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, Tran wants to set the delivery fee based on the distance driven to deliver the flowers. Tran 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 Flowers 4 You'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). -X Data Table Variable cost (slope) Now determine the formula that is used to calculate the fixed cost component. Month Miles Driven Van Operating Costs Fixed cost January ...... 15,500 $5,400 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.) February 17,500 $5,350 $4,980 y = X + March 14,400 Use the operating cost equation you determined above to predict van operating costs at a volume of 16,000 miles. 16,400 $5,280 April May June $5,580 The operating costs at a volume of 16,000 miles is 16,900 15,300 13,500 $5,010 $4,590 July Print Done