Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
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: Number of Jerseys Operating Month Printed Cost January 185 $5,680 February 190 5,875 March 575 8,575 April 710 9,755 May 650 9,255 June 450 6,220 390 6,135 August 265 5,915 September 160 4,860 October 290 6,015 November 270 5,975 December 175 4,930 July Required: 3. 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 Cost 4. Using the high-low method results, calculate the store's expected operating cost if it printed 425 jerseys. (Do not round your intermediate calculations. Round your answer to the nearest whole number.) Total Cost 5. Perform a least-squares regression analysis on Leslie's data. (Use Microsoft Excel or a statistical package to find the coefficients using least squares regression. Round your answers to 2 decimal places.) Coefficients Intercept X Variable 1 6. Using the regression output, create a linear equation (y = a + bx) for estimating Leslie's operating costs. (Round your answers to 2 decimal places.) Total Costa (Number of Jerseys 7. Using the least-squares regression results, calculate the store's expected operating cost if it prints 640 jerseys. (Round your intermediate calculations to 2 decimal places. Round your final answer to 2 decimal places.) Total Cost

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

Managerial Accounting, 1, (6 Months)

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

14th Edition

1337270814, 9781337270816

More Books

Students also viewed these Accounting questions

Question

Did you provide headings that offer structure to the information?

Answered: 1 week ago