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Davis Stores sells clothing in 15 stores located around the southwestern United States. The managers at Davis are considering expanding by opening new stores and

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Davis Stores sells clothing in 15 stores located around the southwestern United States. The managers at Davis are considering expanding by opening new stores and are interested in estimating costs in potential new locations. They believe that costs are driven in large part by store volume measured by revenue. The following data were collected from last year's operations (revenues and costs in thousands of dollars): Store Revenues Costs 101 $4,100 2,227 5,738 $4.214 102 2,894 103 5,181 104 3,982 3,988 3,676 3,319 105 2,914 4,023 6,894 106 107 5,029 108 1779 2,374 109 5,416 3,228 4,688 110 2,959 111 3,886 4,179 12 4,690 3,200 13 3,552 2,556 14 4,817 4,655 115 2,124 2,986 value: Required information 4.00 points Required Use the high-low method to estimate the fixed and variable portions of store costs based on revenues. (Round variable cost percentage answer to 1 decimal place. Enter Fixed cost answer in thousands of dollars.) Variable cost 51.9 Fixed cost $ 1,451 b. Managers estimate that one of the proposed stores will have revenues of $2.5 million. What are the estimated monthly overhead costs, assuming no inflation? (Round variable cost percentage answer to 1 decimal place. Round your intermediate calculations to the nearest whole dollar. Enter your answer in thousands of dollars.) Store costs c. Managers are also considering a "mega-store" with revenues of $10 million. What are the estimated monthly overhead costs, assuming no inflation? (Round variable cost percentage answer to 1 decimal place. Round your intermediate calculations to the nearest whole dollar. Enter your answer in thousands of dollars.) Store costs

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