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In: Statistics and Probability

Leslie Sporting Goods is a locally owned store that specializes in printing team jerseys. The majority...

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:

Number of Operating
Month Jerseys Printed Cost
January 170 $5,790
February 190 5,825
March 545 8,660
April 725 9,760
May 645 9,260
June 425 6,210
July 335 6,145
August 260 5,925
September 125 4,810
October 315 6,010
November 260 5,970
December 150 4,950


Required:
3. Using the high-low method, calculate the store’s total fixed operating costs and variable operating cost per jersey.

Variable Cost per Jersey=$8.25

Fixed Cost = $3779

4. Using the high-low method results, calculate the store’s expected operating cost if it printed 480 jerseys.

Total Cost= $7739
5. Perform a least-squares regression analysis on Leslie’s data.
6. Using the regression output, create a linear equation (y = a + bx) for estimating Leslie’s operating costs.
7. Using the least-squares regression results, calculate the store’s expected operating cost if it prints 620 jerseys.

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Expert Solution

orchestra answered 1 year ago
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