Month	Miles Driven	Van Operating Costs
January. . . . . . . . . . . . .	15,900	$5,430
February. . . . . . . . . . . . . . . . .	17,300	$5,740
March. . . . . . . . . . . . . . .	14,600	$4,940
April. . . . . . . . . . . . . . . .	16,300	$5,270
May. . . . . . . . . . . . . . . . . . . . .	17,200	$5,820
June. . . . . . . . . . . . . . . . . . . . .	15,200	$5,400
July. . . . . . . . . . . . . . . .	14,300	$4,990

?Let's begin by determining the formula that is used to calculate the variable cost? (slope).

/

=

Variable cost (slope)

Now determine the formula that is used to calculate the fixed cost component.

-

=

Fixed cost

Use the? high-low method to determine

Flowers 4 YouFlowers 4 You?'s

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

y = $

x + $

Use the operating cost equation you determined above to predict van operating costs at a volume of

16 comma 00016,000

miles.

The operating costs at a volume of 16,000 miles is $

.