Answer:
Use the high-low method to determine Flower Hour's cost equation for van operating costs. 
- total cost = $1,355 + ($0.25 x total miles) 
Use your results to predict van operating costs at a volume of 15,000 miles.
- total cost (15,000 miles) = $1,355 + ($0.25 x 15,000) = $5,105
Explanation:
Month                 Miles driven           Van Operating Costs
January                    15,800                        $5,460
February                  <u>17,300</u>                         <u>$5,680</u>
March                       14,600                        $4,940
April                         16,000                         $5,310
May                           17,100                        $5,830 
June                         15,400                        $5,420
July                           <u>14,100</u>                        <u>$4,880</u>
high cost - low cost = $5,680 - $4,880 = $800
high cost - low cost = 17,300 - 14,100 = 3,200 miles
variable cost per mile = $800 / 3,200 miles = $0.25 per mile
total variable cost when driving 14,100 miles = 14,100 miles x $0.25 per mile = $3,525
total fixed cost = $4,880 - $3,525 = $1,355
total cost = $1,355 + ($0.25 x total miles) 
total cost (15,000 miles) = $1,355 + ($0.25 x 15,000) = $5,105