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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 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: April Number of Jerseys Operating Month Printed Cost January 150 $4,880 February 195 5,865 March 175 5, 765 525 8,595 May 655 9,230 June 720 9,725 July 6,225 August 295 6,010 September 355 6,125 October 5,975 November 250 5,935 December 4,925 420 255 165 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 475 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 Cost = (Number of Jerseys) 7. Using the least-squares regression results, calculate the store's expected operating cost if it prints 650 jerseys. (Round your intermediate calculations to 2 decimal places. Round your final answer to 2 decimal places.) Total Cost
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