Required information (The following information applies to the questions displayed below.) 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): Store 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 Costs $2,388 4,78 2,719 2,602 3,440 2,474 2,802 3,951 1,955 3,917 4,181 5,939 3,257 4,752 2,334 Employees 31 47 38 30 35 44 28 40 26 34 35 55 44 54 34 Revenues $4,539 6,449 5,163 4,149 4,795 3,899 6,824 3,570 2,500 6,250 6,206 2,750 4,843 3,850 2,790 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 Required information [The following information applies to the questions displayed below.) 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): Store 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 Costs $2,388 4,781 2,719 2,602 3,440 2,474 2,802 3,951 1,955 3,917 4,181 5,939 3,257 4,752 2,334 Employees 31 47 38 30 35 44 28 40 26 34 35 55 44 54 34 Revenues $4,539 6,449 5,163 4,149 4,795 3,899 6,824 3,570 2,500 6,250 6,206 2,750 4,843 3,850 2,790 b. Use the results of your high-low analysis to estimate the cost for a store with 49 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 Required information [The following information applies to the questions displayed below.] 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): Costs Store 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 $2,388 4,781 2,719 2,602 3,440 2,474 2,802 3,951 1,955 3,917 4,181 5,939 Employees 31 47 38 30 35 44 28 40 26 34 35 55 44 54 34 Revenues $4,539 6,449 5,163 4,149 4,795 3,899 6,824 3,570 2,500 6,250 6,206 2,750 4,843 3,850 2,790 3,257 4,752 2,334 c. Prepare a scattergraph between store cost and employees. Instructions: 1. Click on a point to the right of the graph. 2. Click within the graph to place the point. 3. To enter exact coordinates, click on the point and then click on the processing wheel symbol and then enter the exact coordinates in the dialog box that pops up. 4. Click OK. Methods of Estimating Costs: Davis Stores Store 101 $7,000 Store 102 $6,000 $5,000 Store 103 $4,000 - Store 104 Costs ($000) $3,000 $2,000 Store 105 $1,000 O Store 108 SO 0 10 20 30 40 50 80 Store 107 Employees reset (The following information applies to the questions displayed below.] 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): Store 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 Costs $2,388 4,781 2,719 2,602 3,440 2,474 2,802 3,951 1,955 3,917 4,181 5,939 3,257 4,752 2,334 Employees 31 47 38 30 35 44 28 40 26 34 35 55 44 54 34 Revenues $4,539 6,449 5,163 4,149 4,795 3,899 6,824 3,570 2,500 6,250 6,206 2,750 4,843 3,850 2,790 d-1. Enter the regression coefficients. d-2. Estimate the cost of a store with 49 employees using the results from a simple regression of store cost on employees. Complete this question by entering your answers in the tabs below. Reg D1 Reg D2 Enter the regression coefficients. (Round your answers to 2 decimal places. Negative amounts should be indicated by a minus sign.) Intercept Employees Complete this question by entering your answers in the tabs below. Reg D1 Reg D2 Estimate the cost of a store with 49 employees using the results from a simple regression of store cost on employees. (Round your intermediate calculations and final answer to 2 decimal places.) Store cost