Cost Equation Assignment
E6-27A (similar to) Question Help O Kerri Woo, owner of Tulip Time, 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 fixed and variable portions of her van operating costs so that she has a better idea of how delivery distance affects these costs. She has the following data from the past seven months: (Click the icon to view the data.) Read the requirements.
Requirement 1. Determine the company's cost equation (use the output from the Excel regression). (Round the amounts to two decimal places.) y=s Ox+8 O i Data Table – X Month January February……… March. ………. Miles Driven 15,400 17,900 15,200 15,800 16,900 16,000 14,500 Van Operating Costs $5,200 $5,480 $4,980 $5,350 $5,620 $5,300 April ……… May ……… June… July………. $4,800 Enter any number in the edit fields and then click Check Answer. Print Done.
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