Leslie Sporting Goods is a locally owned store that specializesin printing team jerseys. The majority of its business comes fromorders for various local teams and organizations. While Leslie’sprints everything from bowling team jerseys to fraternity/sororityapparel to special event shirts, summer league baseball andsoftball team jerseys are the company’s biggest source ofrevenue.

A portion of Leslie’s operating information for the company’s lastyear follows:

	Number of	Operating
Month	Jerseys Printed	Cost
January	200	$5,785
February	220	5,865
March	535	8,635
April	675	9,725
May	630	9,275
June	430	6,245
July	340	6,170
August	250	5,940
September	175	4,880
October	320	6,050
November	260	5,980
December	195	4,930

Required:
3. Using the high-low method, calculate the store’s totalfixed operating costs and variable operating cost per jersey.

Fixed cost -

Variable cost per jersey -
4. Using the high-low method results, calculatethe store’s expected operating cost if it printed 475 jerseys.

Total Cost -
5. Perform a least-squares regression analysis onLeslie’s data.

Intercept -

X Variable 1 -
6. Using the regression output, create a linearequation (y = a + bx) for estimatingLeslie’s operating costs.

Total cost = ________+ _____ Total number of jerseys
7. Using the least-squares regression results,calculate the store’s expected operating cost if it prints 635jerseys.

Total cost -