Based on the given information, Kallie Tran wants to set the delivery fee based on the distance driven to deliver the flowers. In order to achieve this, she needs to separate the fixed and variable portions of her van operating costs so that she can better understand how delivery distance affects these costs.
To determine the firm's cost equation, Flower Paradise performed regression analysis on the next year's data using Excel. The output generated by Excel is as follows:

The cost equation for Flower Paradise can be determined using the coefficients from the regression analysis. The equation can be written as:

In this case, the intercept of 42.85 represents the fixed cost of operating the van, which includes expenses such as insurance, registration, and maintenance. The coefficient for distance of 1.23 represents the variable cost per unit of distance driven, which includes expenses such as fuel and wear and tear on the van.
Therefore, the cost equation for Flower Paradise can be written as:

This equation can be used to determine the total cost of operating the van for any given distance. For example, if the distance driven is 20 miles, the total cost would be:

Therefore, Flower Paradise should charge a delivery fee of at least $68.45 for delivering flowers a distance of 20 miles.
I hope this helps!