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Please, figure it out. 5 Davis Stores sells clothing in 15 stores located around the southwestern United States. The managers at Davis are considering expanding
Please, figure it out.
5 Davis Stores sells clothing in 15 stores located around the southwestern United States. The managers at Davis are considering expanding by opening new stores and are interested in estimating costs in potential new locations. They believe that costs are driven in large part by store volume measured by revenue. During a discussion, one of the managers suggests that number of employees might be better at explaining cost than store revenues. As a result of that suggestion, managers collected the following information from last year's operations (revenues and costs in thousands of dollars): Part 1 of 3 eBook Store 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 Costs $1,830 3,000 2,620 1,941 5,580 4,244 5, 424 2,837 3,699 1,767 3,437 5,796 4,346 5, 769 5,045 Employees 28 32 39 31 48 27 49 26 38 24 33 37 54 53 46 Revenues $3,665 4,050 4,175 6,621 4,186 2,889 2,542 2,643 2,718 5,913 3,549 4,184 6,524 3,090 3,330 References Problem 5-68 (Algo) Part a Required a. Use the high-low method to estimate the fixed and variable portions of store costs based on employees. (Do not round your intermediate calculations. Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places. Enter your answers in thousands of dollars.) Variable cost (per employee) Fixed cost Problem 5-68 (Algo) Part 6 b. Use the results of your high-low analysis to estimate the cost for a store with 50 employees. (Do not round your intermediate calculations. Negative amounts should be indicated by a minus sign. Round your answer to the nearest whole number (in thousands of dollars).) Store cost e-1. Enter the regression coefficients. e-2. Estimate the cost of a store with revenues of $2.90 million and 50 employees using the results of a multiple regression of store costs on store revenues and employees. Complete this question by entering your answers in the tabs below. Req E1 Req E2 Enter the regression coefficients. (Round "Intercept", "Employees" and "Revenues" to 2 decimal places. Negative amounts should be indicated by a minus sign.) Intercept Revenues Employees Req E1 Req E2 > e-1. Enter the regression coefficients. e-2. Estimate the cost of a store with revenues of $2.90 million and 50 employees using the results of a multiple regression of store costs on store revenues and employees. Complete this question by entering your answers in the tabs below. Reg E1 Reg E2 Estimate the cost of a store with revenues of $2.90 million and 50 employees using the results of a multiple regression of store costs on store revenues and employees. (Round "Intercept", "Employees" and "Revenues" to 2 decimal places in the intermediate calculations. Round your final answers decimal places.) Store cost
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