Use the high-low method to determine

Rose Red's

operating cost equation. (Round the variable cost to the nearest cent and the fixed cost to the nearest whole dollar.)

Month

Miles Driven

Van Operating Costs

January. . . . .

16,000

$5,490

February. . . . .

17,500

$5,700

March. . . . . .

14,900

$4,910

April. . . . . . . .

16,200

$5,340

May. . . . . . . .

16,900

$5,820

June. . . . . . .

15,100

$5,410

July. . . . . . . . .

14,500

$4,920