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Waveney DIY Centers (WDC) operates a few dozen stores in the eastern United States. The stores are popular with home remodelers, contractors, and do-it-yourself customers. The managers at Waveney are interested in understanding what drives costs as well as getting better cost estimates when planning new stores. The area manager for the Southeast Region is interested in new data analysis approaches to management and offered to run a test using data from the 14 stores in the region.

The initial thoughts of the managers and the financial analysts in the region were that two primary factors drove store costs: store area (square footage) and revenue. The following data were collected from the most recent year of operations (revenues and costs in thousands of dollars).

Store	Revenues ($000)	Area (Square Feet)	Costs ($000)
SE-01	$ 21,445	70,047	$ 16,699
SE-02	16,382	52,317	13,395
SE-03	26,621	84,231	20,110
SE-04	20,289	68,274	15,979
SE-05	20,566	59,409	16,012
SE-06	18,656	68,274	14,999
SE-07	25,405	96,648	19,591
SE-08	13,601	46,998	11,647
SE-09	23,981	78,912	18,353
SE-10	16,730	62,955	13,764
SE-11	21,258	66,501	16,533
SE-12	18,020	73,593	14,697
SE-13	14,574	62,955	12,470
SE-14	23,804	75,366	18,194

Results from a multiple regression of store costs on revenues and area are as follows.

Equation:
Store cost = $2,748.88 (in thousands) + (69.0% Revenues) + ($0.062 Area)
Statistical data
Correlation coefficient	0.999
Adjusted R2	0.999

Required:

The managers in the region are interested in opening a new store with expected revenues of $23.5 million and expected area of 54,500 square feet. Assuming the data and cost estimates from the current stores are appropriate for the new store (SE-19), what are the estimated store costs for store SE-19 using the results from this regression?

Note: Do not round your intermediate calculations. Enter your answer in thousands of dollars rounded to 2 decimal places.

Waveney DIY Centers (WDC) operates a few dozen stores in the eastern United States. The stores are popular with home remodelers, contractors, and do-lt-yourself customers. The managers at Waveney are interested in understanding what drives costs as well as getting better cost estimates when planning new stores. The area manager for the Southeast Region is interested in new data analysis approaches to management and offered to run a test using data from the 14 stores in the region. The initial thoughts of the managers and the financial analysts in the region were that two primary factors drove store costs: store area (square footage) and revenue. The following data were collected from the most recent year of operations (revenues and costs in thousands of dollars). Results from a multiple regression of store costs on revenues and area are as follows. Equation: Store cost =$2,748.88 (in thousands) +(69.08 Revenues )+ ( $0.062 Area) Statistical data Correlation coefficient Adjusted R2 .0 .999 0.999 The initial thoughts of the managers and the financial analysts in the region were that two primary factors drove store costs: store area (square footage) and revenue. The following data were collected from the most recent year of operations (revenues and costs in thousands of dollars). Results from a multiple regression of store costs on revenues and area are as follows. Equation: Store cost =$2,748.88 (in thousands) +(69.04 Revenues )+ ( $0.062 Area) Statistical data correlation coefficient Adjusted R2 0. 999 e. 999 Required: The managers in the region are interested in opening a new store with expected revenues of $23.5 million and expected area of 54,500 square feet. Assuming the data and cost estimates from the current stores are appropriate for the new store (SE-19), what are the estimated store costs for store SE-19 using the results from this regression? Note: Do not round your intermediate calculations. Enter your answer in thousands of dollars rounded to 2 decimal places