Question
Leslie Sporting Goods is a locally owned store that specializes in printing team jerseys. The majority of its business comes from orders for various local
Leslie Sporting Goods is a locally owned store that specializes in printing team jerseys. The majority of its business comes from orders for various local teams and organizations. While Leslies prints everything from bowling team jerseys to fraternity/sorority apparel to special event shirts, summer league baseball and softball team jerseys are the companys biggest source of revenue. A portion of Leslies operating information for the companys last year follows:
Number of | Operating | |
Month | Jerseys Printed | Cost |
January | 210 | $5,745 |
February | 220 | 5,850 |
March | 540 | 8,645 |
April | 690 | 9,750 |
May | 625 | 9,250 |
June | 460 | 6,210 |
July | 385 | 6,125 |
August | 245 | 5,930 |
September | 195 | 4,800 |
October | 290 | 6,015 |
November | 255 | 5,960 |
December | 200 | 4,955 |
Required: 3. Using the high-low method, calculate the stores total fixed operating costs and variable operating cost per jersey. 4. Using the high-low method results, calculate the stores expected operating cost if it printed 475 jerseys. 5. Perform a least-squares regression analysis on Leslies data. 6. Using the regression output, create a linear equation (y = a + bx) for estimating Leslies operating costs. 7. Using the least-squares regression results, calculate the stores expected operating cost if it prints 605 jerseys.
Leslie Sporting Goods is a locally owned store that specializes in printing team jerseys. The majority of its business comes from orders for various local teams and organizations. While Leslie's prints everything from bowling team jerseys to fraternity/sorority apparel to special event shirts, summer league baseball and softball team jerseys are the company's biggest source of revenue. A portion of Leslie's operating information for the company's last year follows: Month January February March April May June July August September October November December Number of Jerseys Printed 210 220 540 690 625 460 385 245 195 290 255 200 Operating Cost $5, 745 5,850 8,645 9,750 9, 250 6,210 6, 125 5,930 4,800 6,015 5,960 4,955 Required: 3. Using the high-low method, calculate the store's total fixed operating costs and variable operating cost per jersey. 4. Using the high-low method results, calculate the store's expected operating cost if it printed 475 jerseys. 5. Perform a least-squares regression analysis on Leslie's data. 6. Using the regression output, create a linear equation (y= a + bx) for estimating Leslie's operating costs. 7. Using the least-squares regression results, calculate the store's expected operating cost if it prints 605 jerseys. Complete this question by entering your answers in the tabs below. Required 3 Required 4 Required 5 Required 6 Required 7 Using the high-low method, calculate the store's total fixed operating costs and variable operating cost per jersey. (Do not round your intermediate calculations. Round your "Variable Cost" answer to 2 decimal places and "Fixed Cost" answer to the nearest whole number.) Variable Cost per Jersey Fixed CostStep by Step Solution
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