Tony Long, owner of Flowers Direct, operates a local chain of fl oral shops. Each shop has

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Tony Long, owner of Flowers Direct, operates a local chain of fl oral shops. Each shop has its own delivery van. Instead of charging a fl at delivery fee, Long wants to set the delivery fee based on the distance driven to deliver the flowers. Long wants to separate the fixed and variable portions of his van operating costs so that he has a better idea how delivery distance affects these costs. He has the following data from the past seven months:
Tony Long, owner of Flowers Direct, operates a local chain

Requirements
1. Prepare a scatter plot of Long's volume (miles driven) and van operating costs.
2. Do the data appear to contain any outliers? Explain.
3. How strong of a relationship is there between miles driven and van operating expenses?

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Managerial Accounting

ISBN: 978-0132890540

3rd edition

Authors: Karen W. Braun, Wendy M. Tietz

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