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

Store	Costs	Employees	Revenues
101	$2,388	31	$4,539
102	4,781	47	6,449
103	2,719	38	5,163
104	2,602	30	4,149
105	3,440	35	4,795
106	2,474	44	3,899
107	2,802	28	6,824
108	3,951	40	3,570
109	1,955	26	2,500
110	3,917	34	6,250
111	4,181	35	6,206
112	5,939	55	2,750
113	3,257	44	4,843
114	4,752	54	3,850
115	2,334	34	2,790

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 calculations. Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places. Enter your answers in thousands of dollars.)

b. Use the results of your high-low analysis to estimate the cost for a store with 49 employees. (Do not round your intermediate calculations. Negative amounts should be indicated by a minus sign. Round your answer to the nearest whole number (in thousands of dollars)

c. Prepare a scattergraph between store cost and employees.

d-1. Enter the regression coefficients.

d-2. Estimate the cost of a store with 49 employees using the results from a simple regression of store cost on employees.