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Home Quiz [due Day 7] i AA Required information ezto.mheducation.com Gradebook /ACC/349T: Cost Accounting M] Question 2 - Wk 3 - Apply Saved Help
Home Quiz [due Day 7] i AA Required information ezto.mheducation.com Gradebook /ACC/349T: Cost Accounting M] Question 2 - Wk 3 - Apply Saved Help Save [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 101 $4,280 $4,484 102 2,407 3,254 103 6,008 5,451 104 4,342 4,448 105 3,184 4,216 106 4,383 3,949 107 7,074 5,299 108 2,049 3,274 109 6,316 5,408 110 3,768 3,499 111 4,246 4,629 112 5,140 3,560 113 3,732 3,096 114 5,537 5,015 115 3,024 3,256 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 $4.3 million. What are the estimated monthly overhead costs, assuming no inflation? c. Managers are also considering a "mega-store" with revenues of $28 million. What are the estimated monthly overhead costs, assuming no inflation? Complete this question by entering your answers in the tabs below. Required A Required B Required C < Prev 2 of 6 Next >
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