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). Revenues (5000) Costs (5000) $ 16,099 Area Store SE-01 SE-02 (Square Feet) $ 20,845 69,447 15,782 51,717 12,795 SE-03 26,021 83,631 19,510 SE-04 19,689 67,674 15,379 SE-05 19,966 58,809 15,412 SE-06 18,056 67,674 14,399 SE-07 24,805 96,048 18,991 SE-08 13,001 46,398 11,047 SE-09 23,381 78,312 17,753 SE-10 16,130 62,355 13,164 SE-11 20,658 65,901 15,933 SE-12 17,420 72,993 14,097 SE-13 13,974 62,355 11,870 SE-14 23,204 74,766 17,594 Exercise 5-45 (Algo) Methods of Estimating Costs: High-Low (LO 5-1, 2)