Question: please help me solve : *Use the high-low method to determine Flower Mode's operating cost equation. *Use the operating cost equation you determined above to
*Use the operating cost equation you determined above to predict van operating costs at a volume of 15,000 miles.
Kaitlyn Woo, 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, Woo wants to set the delivery fee based on the distance driven to deliver the flowers. Woo wants to separate the foxed 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 15,000 miles. Let's begin by dotermining the formula that is used to calculate the variable cost (slope). Change in cost C Change in volume Now determine the formula that is used to calculate the fixed cost component. Total operating cont * Total variable cost 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.) y= Datatable
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