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): Employees 4,214 2,894 Costs Store 101$ 102 103 104 105 106 107 108 Revenues 39$ 4,100 29 2,227 47 5,738 38 3,982 33 2,914 38 4,023 54 6,894 26 1,779 44 5,416 35 3,228 37 3,886 41 4,690 35 3,552 42 4,817 28 2,124 5,181 3.998 3,676 3,319 5,029 2,374 4,688 2.959 4,179 3,200 2,556 4,655 2,986 109 110 111 112 113 114 115 Required a. Use the high-low method to estimate the fixed and variable portions of store costs based on employees. (Do not round your intermediate calculation. Negative amounts should be indicated by a minus sign. Round your answer to the nearest whole number (in thousands of dollars).) 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$ 102 103 104 105 106 107 108 109 110 Costa Employees Revenue 4,214 399 4,100 2,894 29 2,227 5,181 42 5,738 3,998 38 3,982 3,676 33 2.914 1,519 38 4,023 5,029 54 6,894 2,374 26 1,779 4.680 44 5,416 2,959 35 3,220 4,179 37 3,886 3,20 41 4,690 2,556 35 3,552 6.655 4.617 2.986 28 2.124 112 113 114 115 b. Use the results of your high-low analysis to estimate the cost for a store with 30 employees. (Do not round your intermediate calculation. Enter your answers in thousands of dollars.) Store cost 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 1015 102 103 104 105 106 107 108 109 110 111 112 Conta 4,214 2,894 5,181 3,998 3,676 3,319 5,029 2,374 4.688 2,959 4,179 3,200 2,556 4,655 2.986 Employees Revenues 395 4,100 29 2,222 47 5,738 38 3,982 33 2,914 38 4,023 56 6,894 26 1,779 44 5,426 35 3,220 37 3,886 41 4.690 35 3,552 42 4.817 20 2. 124 113 114 115 Using the results from a simple regression of store cost on employees, input the following dato: d-1. Enter the regression coefficients d-2. Estimate the cost of a store with 30 employees using the results from a simple regression of store cost on employees