Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I'm currently stuck on this problem even after doing exactly what my book told me to do. Required information [The following information applies to the

image text in transcribedimage text in transcribedimage text in transcribed I'm currently stuck on this problem even after doing exactly what my book told me to do.

Required information [The following information applies to the questions displayed below.) Part 1 of 2 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). 20 points Costs $4,334 3,054 5, 301 4,198 3,916 3,599 eBook Print 107 References Store Revenues 101 $4,180 102 2,307 103 5,858 104 4,142 105 3,034 106 4,183 6,974 108 1,899 109 5,816 110 3, 468 111 4,046 112 4,890 113 3,632 114 5,137 115 2,524 774 5,008 3,199 4,379 3,360 2,7 0 in on 3,1 o Required Required Part 1 of 2 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 $3.3 million. What are the estimated monthly overhead costs, assuming no inflation? c. Managers are also considering a "mega-store with revenues of $18 million. What are the estimated monthly overhead costs, assuming no inflation? Dints Complete this question by entering your answers in the tabs below. eBook Print Required A Required B Required c References 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.) Variable cost Fixed cost (Required A Required B > Check my work Required Part 1 of 2 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 $3.3 million. What are the estimated monthly overhead costs, assuming no inflation? c. Managers are also considering a "mega-store with revenues of $18 million. What are the estimated monthly overhead costs, assuming no inflation? 20 points Complete this question by entering your answers in the tabs below. eBook Print Required A Required B Required C References 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.) Store costs

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Robert K. Eskew, Daniel L. Jensen

5th Edition

0070213550, 978-0070213555

More Books

Students also viewed these Accounting questions