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.)