[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 Costs Employees 34 Revenues 101 $2,418 5,184 $2,031 102 51 5,504 4,142 3,809 5,191 5,782 4,891 3,561 4,155 2,728 3,461 5,337 2,033 4,894 3,210 103 104 3,566 2,659 5,627 32 31 105 55 106 5,762 3,365 3,726 4,726 2,842 5,362 3,523 2,075 5,873 5,640 51 107 108 33 47 38 109 110 32 111 38 112 51 27 113 114 58 115 52 51 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.) Answer is complete but not entirely correct. Variable cost (per employee) 92.29 Fixed cost (827.99) b. Use the results of your high-low analysis to estimate the cost for a store with 39 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).) Answer is complete but not entirely correct. $ 2,771 Store cost