Reference no: EM13333938

Leslie Sporting Goods is a locally owned store that specializes in printing team jerseys. The majority of its business comes from orders for various local teams and organizations. While Leslie's prints everything from bowling team jerseys to fraternity/sorority apparel to special event shirts, summer league baseball and softball team jerseys are the company's biggest source of revenue.
A portion of Leslie's operating information for the company's last year follows:

Month Number of
Jerseys Printed Operating
Cost
January 215 $ 5,500
February 210 5,740
March 380 5,800
April 625 8,675
May 750 9,000
June 630 9,760
July 400 6,200
August 350 6,155
September 300 5,980
October 330 6,010
November 200 4,950
December 150 4,500

Required :
3. Using the high-low method, calculate the store's total fixed operating costs and variable operating cost per jersey. (Round your "Variable Cost" answer to 2 decimal places and "Fixed Cost" answer to the nearest whole number.)

4. Using the high-low method results, calculate the store's expected operating cost if it printed 480 jerseys. (Round your answer to the nearest whole number.)

5. Perform a least-squares regression analysis on Leslie's data. (Use Microsoft Excel or a statistical package to find the coefficients using least-squares regression. Round your answers to 2 decimal places.)

6. Using the regression output, create a linear equation (y = a + bx) for estimating Leslie's operating costs. (Round your answers to 2 decimal places.)

7. Using the least-squares regression results, calculate the store's expected operating cost if it prints 625 jerseys. (Round your intermediate calculations and final answer to 2 decimal places.)