Question

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	150	$4,880
February	195	5,865
March	175	5,765
April	525	8,595
May	655	9,230
June	720	9,725
July	420	6,225
August	295	6,010
September	355	6,125
October	255	5,975
November	250	5,935
December	165	4,925

Required:
3. Using the high-low method, calculate the store’s total fixed operating costs and variable operating cost per jersey. (Do not round your intermediate calculations. Round your "Variable Cost" answer to 2 decimal places and "Fixed Cost" answer to the nearest whole number.)

Variable Cost per Jersey
Fixed Cost

  
4. Using the high-low method results, calculate the store’s expected operating cost if it printed 475 jerseys. (Do not round your intermediate calculations. Round your answer to the nearest whole number.)

Total Cost:____________

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.)

	Coefficients
Intercept
X Variable

  
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.)

Total cost =__________+__________(Number of Jerseys)

7. Using the least-squares regression results, calculate the store’s expected operating cost if it prints 650 jerseys. (Round your intermediate calculations to 2 decimal places. Round your final answer to 2 decimal places.)

Total Cost:=______________

Answer 1