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:
Month | Number of Jerseys Printed | Operating Cost |
January | 170 | $4,805 |
February | 215 | 5,840 |
March | 195 | 5,770 |
April | 545 | 8,610 |
May | 635 | 9,275 |
June | 710 | 9,800 |
July | 450 | 6,240 |
August | 295 | 6,005 |
September | 370 | 6,145 |
October | 270 | 5,985 |
November | 270 | 5,930 |
December | 185 | 4,950 |
Required: 3. Using the high-low method, calculate the stores 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.)
4. Using the high-low method results, calculate the stores expected operating cost if it printed 425 jerseys. (Do not round your intermediate calculations. Round your answer to the nearest whole number.) 5. Perform a least-squares regression analysis on Leslies data. (Use Microsoft Excel or a statistical package to find the coefficients using least-squares regression. Round your answers to 2 decimal places.) 6. Using the regression output, create a linear equation (y = a + bx) for estimating Leslies operating costs. (Round your answers to 2 decimal places.) 7. Using the least-squares regression results, calculate the stores expected operating cost if it prints 620 jerseys. (Round your intermediate calculations to 2 decimal places. Round your final answer to 2 decimal places.)
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