Required information

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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 years operations (revenues and costs in thousands of dollars):

Store	Costs	Employees	Revenues
101	$2,323	40	$5,881
102	1,926	25	4,424
103	2,941	28	6,983
104	2,728	37	6,937
105	2,497	49	5,322
106	5,206	50	3,339
107	2,924	44	4,807
108	3,168	40	2,829
109	2,775	28	4,709
110	5,917	57	4,640
111	2,452	32	3,806
112	3,128	28	5,005
113	3,282	37	3,298
114	4,880	42	4,910
115	5,157	54	4,889

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