Store Revenues Costs

101 $4,100 $4,214

102 2227 2894

103 5,738 5,181

104 3982 3998

105 2,914 3,676

106 4,023 3,319

107 6,894 5,029

108 1,779 2,374

109 5,416 4,688

110 3,228 2,959

111 3,886 4,179

112 4,690 3,200

113 3,552 2,556

114 4,817 4,655

115 2,124 2,986

a.Use the high-low method to estimate the fixed and variable portions of store costs based on revenues.

b.Managers estimate that one of the proposed stores will have revenues of $2.5 million. What are the estimated monthly overhead costs, assuming no inflation?

c.Managers are also considering a "mega-store" with revenues of $10 million. What are the estimated monthly overhead costs, assuming no inflation?