Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please show how you got the answer: 5) Leslie Sporting Goods is a locally owned store that specializes in printing team jerseys. The majority of

Please show how you got the answer:

5) 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:

Number of Operating
Month Jerseys Printed Cost
January 170 $5,790
February 190 5,825
March 545 8,660
April 725 9,760
May 645 9,260
June 425 6,210
July 335 6,145
August 260 5,925
September 125 4,810
October 315 6,010
November 260 5,970
December 150 4,950

a) 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.)

Variable cost per jersey: ____

Fixed Cost: ____

b) Using the high-low method results, calculate the stores expected operating cost if it printed 480 jerseys. (Do not round your intermediate calculations. Round your answer to the nearest whole number.)

Total Cost: ____

c) 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.)

Intercept: ____

X variable 1: ____

d) Using the regression output, create a linear equation (y = a + bx) for estimating Leslies operating costs. (Round your answers to 2 decimal places.)

Total Cost = ____ + _____ (number of jerseys)

e) Using the least-squares regression results, calculate the stores expected operating cost if it prints 620 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

Petroleum Accounting: Principles, Procedures; And Issues

Authors: Dennis Jennings, John Brady, Rich Shappard, Craig Friou

8th Edition

0940966328, 978-0940966321

More Books

Students also viewed these Accounting questions