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. During a discussion, one of the managers suggests that number of employees might be better at explaining cost than store revenues. As a result of that suggestion, managers collected the following information from last year's operations (revenues and costs in thousands of dollars): Store 101 Costs $4,754 Employees Revenues 44 $2,844 102 5,548 52 5,055 103 3,262 42 2,920 104 3,216 37 6,380 105 5,503 57 5,946 106 3,513 107 5,052 108 3,466 109 2,149 110 3,286 111 5,086 112 5,933 SECONDO 35 2,261 41 3,847 33 2,064 30 4,856 37 4,844 55 6,574 58 2,400 113 3,809 55 5,468 114 3,090 41 6,600 115 4,626 48 3,915 Problem 5-68 (Algo) Part c c. Prepare a scattergraph between store cost and employees. Required information 1. Click on a point to the right of the graph. 2. Click within the graph to place the point. 3. To enter exact coordinates, click on the point and then click on the processing wheel symbol and then enter the exact coordinates in the dialog box that pops up. 4. Click OK. Costs ($000) $7,000 $6,000- $5,000 $4,000 Methods of Estimating Costs: Davis Stores Store 101 Store 102 Store 103 $3,000 Store 104 Store 105 $2,000 $1,000 Store 106