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 $4,180 $4,334 102 2,307 3,054 103 5,858 5,301 104 4,142 4,198 105 3,034 3,916 106 4,183 3,599 107 6,974 5,149 108 1,899 2,774 109 5,816 5,008 110 3,468 3,199 111 4,046 4,379 112 4,890 3,360 113 3,632 2,796 114 5,137 4,815 115 2,524 3,106 References Section BreakExercise 5-39, 5-40 and 5-41 (LO 5-4, 5) 1.value: 1.00 pointsRequired information Exercise 5-39 Methods of Estimating Costs: High-Low (LO 5-4) Required a. 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.) b. Managers estimate that one of the proposed stores will have revenues of $3.3 million. What are the estimated monthly overhead costs, assuming no inflation? (Do not round variable cost percentage for your calculations. Round your intermediate calculations to the nearest whole dollar. Enter your answer in thousands of dollars.) c. Managers are also considering a mega-store with revenues of $18 million. What are the estimated monthly overhead costs, assuming no inflation? (Do not round variable cost percentage for your calculations. Round your intermediate calculations to the nearest whole dollar. Enter your answer in thousands of dollars.)

Exercise 5-39, 5-40 and 5-41 (LO 5-4, 5) [The following information applies to the questions displayed below] 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 $4,180 $4,334 101 102 2,307 3,054 5,858 103 5,301 104 4,142 3,034 4,183 4,198 105 3,916 106 3,599 107 6,974 5,149 108 1,899 2,774 5,816 109 5,008 3,199 110 3,468 111 4,046 4,379 4,890 112 3,360 113 3,632 2,796 114 5,137 4,815 115 2,524 3,106 References Section Break Exercise 5-39, 5-40 and 5-41 (LO 5-4, 5)