60.1K

Verified Solution

Link Copied!

Leslie Sporting Goods is a locally owned store that specializes in printing team jerseys. The majority of its business comes from orders for various local teams and organizations. While Leslies prints everything from bowling team jerseys to fraternity/sorority apparel to special event shirts, summer league baseball and softball team jerseys are the companys biggest source of revenue. A portion of Leslies operating information for the companys last year follows:

Month	Number of Jerseys Printed	Operating Cost
January	170	$4,805
February	215	5,840
March	195	5,770
April	545	8,610
May	635	9,275
June	710	9,800
July	450	6,240
August	295	6,005
September	370	6,145
October	270	5,985
November	270	5,930
December	185	4,950

Required: 3. Using the high-low method, calculate the stores total fixed operating costs and variable operating cost per jersey. (Do not round your intermediate calculations. Round your "Variable Cost" answer to 2 decimal places and "Fixed Cost" answer to the nearest whole number.)

4. Using the high-low method results, calculate the stores expected operating cost if it printed 425 jerseys. (Do not round your intermediate calculations. Round your answer to the nearest whole number.) 5. Perform a least-squares regression analysis on Leslies data. (Use Microsoft Excel or a statistical package to find the coefficients using least-squares regression. Round your answers to 2 decimal places.) 6. Using the regression output, create a linear equation (y = a + bx) for estimating Leslies operating costs. (Round your answers to 2 decimal places.) 7. Using the least-squares regression results, calculate the stores expected operating cost if it prints 620 jerseys. (Round your intermediate calculations to 2 decimal places. Round your final answer to 2 decimal places.)

Answer & Explanation Solved by verified expert

See Answer