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 years operations (revenues and costs in thousands of dollars).

Store	Revenues	Costs
101	$4,170	$4,319
102	2,297	3,034
103	5,843	5,286
104	4,122	4,173
105	3,019	3,886
106	4,163	3,564
107	6,964	5,134
108	1,884	2,724
109	5,766	4,968
110	3,438	3,169
111	4,026	4,354
112	4,865	3,340
113	3,622	2,766
114	5,097	4,795
115	2,474	3,091

Required

a. Use the high-low method to estimate the fixed and variable portions of store costs based on revenues.

b. Managers estimate that one of the proposed stores will have revenues of $3.2 million. What are the estimated monthly overhead costs, assuming no inflation?

c. Managers are also considering a mega-store with revenues of $17 million. What are the estimated monthly overhead costs, assuming no inflation?

Break down please