Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer all questions and show work PA5-2 (Algo) Estimating Cost Behavior Using Scattergraph, High-Low, and Least-Squares Regression Methods (LO 5-2,5-3, 5-4) Leslie Sporting Goods

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedPlease answer all questions and show work

PA5-2 (Algo) Estimating Cost Behavior Using Scattergraph, High-Low, and Least-Squares Regression Methods (LO 5-2,5-3, 5-4) 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 220 215 245 555 700 615 460 350 320 250 205 200 Operating Cost $5,875 5,780 5,950 8,700 9,700 9,295 6,220 6,150 6,040 5,960 4,925 4,810 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 630 jerseys. Complete this question by entering your answers in the tabs below. Required 3 Required 4 Required 5 Required 6 Required 7 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 8.82 Complete this question by entering your answers in the tabs below. Required 3 Required 4 Required 5 Required 6 Required 7 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 = + $ 8.82 (Number of Jerseys) Complete this question by entering your answers in the tabs below. Required 3 Required 4 Required 5 Required 6 Required 7 Using the least-squares regression results, calculate the store's expected operating cost if it prints 630 jerseys. (Round your intermediate calculations and 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 For Undergraduates

Authors: Christensen, Theodore E. Hobson, L. Scott Wallace, James S.

1st Edition

1618531123, 9781618531124

More Books

Students also viewed these Accounting questions

Question

Are summer stipends available?

Answered: 1 week ago

Question

Explain the multicultural organization development (MCOD) process.

Answered: 1 week ago