- 10 points Skipped Waveney DIY Centers (WDC) operates a few dozen stores in the eastern United States. The stores are popular with home remodelers, contractors, and do-it-yourself customers. The managers at Waveney are interested in understanding what drives costs as well as getting better cost estimates when planning new stores. The area manager for the Southeast Region is interested in new data analysis approaches to management and offered to run a test using data from the 14 stores in the region. The initial thoughts of the managers and the financial analysts in the region were that two primary factors drove store costs: store area (square footage) and revenue. The following data were collected from the most recent year of operations (revenues and costs in thousands of dollars). eBook Store Revenues ($000) Area (Square Feet) Costs ($000) References SE-01 $ 21,045 69,647 $ 16,299 SE-02 15,982 51,917 12,995 SE-03 26,221 83,831 19,710 SE-04 19,889 67,874 15,579 SE-05 20,166 59,009 15,612 SE-06 18,256 67,874 14,599 SE-07 25,005 96,248 19,191 SE-08 13,201 46,598 11,247 SE-09 23,581 78,512 17,953 SE-10 16,330 62,555 13,364 SE-11 20,858 66,101 16,133 SE-12 17,620 73,193 14,297 SE-13 14,174 62,555 12,070 SE-14 23,404 74,966 17,794 Required: a. Use the high-low method to estimate the fixed and variable portions of store costs based on store revenues. b. The managers in the region are interested in opening a new store with expected revenues of $19.5 million. Assuming the data and cost estimates from the current stores are appropriate for the new store (SE-15), what are the estimated store costs for store SE-15? c. Managers are also considering a "mega-store" with revenues of $31.0 million. What are the estimated store costs for the mega