Question
Woo Woo , owner of Flower Paradise FlowerParadise , operates a local chain of floral shops. Each shop has its own delivery van. Instead of
Woo
Woo, owner of Flower Paradise
FlowerParadise, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat deliveryfee, Woo
Woo wants to set the delivery fee based on the distance driven to deliver the flowers. Woo
Woo wants to separate the fixed and variable portions of her
her van operating costs so that she
she has a better idea how delivery distance affects these costs. She
She has the following data from the past sevenmonths:
Use thehigh-low method to determine Flower Paradise
FlowerParadise's cost equation for van operating costs. Use your results to predict van operating costs at a volume of 16 comma 500
16,500 miles.
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