Answered step by step
Verified Expert Solution
Question
1 Approved Answer
PA5-2 (Algo) Estimating Cost Behavior Using Scattergraph and High-Low Methods [LO 5-2, 5-3] Leslie Sporting Goods is a locally owned store that specializes in
PA5-2 (Algo) Estimating Cost Behavior Using Scattergraph and High-Low Methods [LO 5-2, 5-3] 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 or 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 Number of Jerseys Operating Cost 200 $ 5,735 205 5,830 575 8,690 680 9,800 625 9,275 410 6,230 July 390 6,140 August 230 5,940 September 180 4,810 October 305 6,005 November 235 5,960 190 4,955 December 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 455 jerseys. Complete this question by entering your answers in the tabs below. Required 3 Required 4 Using the high-low method, calculate the store's total fixed operating costs and variable operating cost per jersey. Note: 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 Required 3 Required 4 Using the high-low method results, calculate the store's expected operating cost if it printed 455 jerseys. Note: Do not round your intermediate calculations. Round your answer to the nearest whole number. Total Cost
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started