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 January February March Number of Jerseys Printed 170 215 195 545 April May June July August September October November December NTNMNNH Operating Cost $4,805 5,840 5,770 8,610 9,275 9,800 6,240 6,005 6,145 5,985 5,930 4,950

Answer 1

Solution Requirements Tove S 1010 the store's total operating cost per * Useng the high-low fixed operating costs method, calculati and valiable . Jersey. be based on should the following method The high-low data points : Number of Jerseys Total cost-($) Mouth 9800 710 June (high) January (lol) 4805 ица 170 Veliable cest - pee unit Drifference in total cost Difference in activity $9800 - $4805 $4995 540 710-170 fixed cost - 1 - 189.25] per jersey Total wist - (variasle est perceuit x activity +9800 - ($9.25 X 710) 19 nber i eys - $ 9800 - $6567.5 T$ 3232.5 Total cost $3232-5 + $9.25 (Number of Jerseys) Using the high-low method results, calculati Store's expected operating cost of it printed 425 Jerseys. Total cost = $3232.5 + $9.25 (425) (3) => 3232.5 +3931.25 - T 1$ 7163.75

least Leslie's data. perform ☺ perforon (east-squares regression analyeis on Regression output Coefficients. Sutercept las 3534.86 'X' variable wst (6) P4 учет 8. 57 klorking lotes linear for Lesie's equation estimating operating costs is Y = a + 6x Hene, Q Total fired cost - EY - bex [using mathematical I n technique] b = uit variable cost n Exy - (£x) (€) nex2_(ex)2 ne number of months. (given in question) [printed (operating Months 1 x Jersey (6) y cost] , ut xy 170 28900 816850 215 5840 1255600 4805 4G 22,- 195 5770 38025- 1125150 Su) 8610 297025 4692.400 635 2275 403225 5889620- -N m I ho too oo 710 9800 504100 6958000 450 6240 202500 2808000 295 6ous 87020- 1771475 8|u3 136900 2273630 370 270 5985 1615930 1601100 270 72900 72900 34225 5930 .185 4950 915750 4310 (x) 120m) 79355 (Y) 1923950 (<x2) 34723600 (EXY)

then a = 79355 - (8,57) (4310) 12 42418.3 $ 3534-86 79355 - 36936.7 12 12 be (12)(31723600) - (4310)(79355) 12(1923950) - (4310)? 380 68 3200 - 342020050 23.087400 – 18576100 ers 3 38663150 F 68.57 per Jersey 4511300 3 Using regression output, create a linear equation for estimating Leslie's operating costs. Y = a + bx = $ 353486 + '$8.57 (rrumber of Jerseyu) Veina least - Squares regression resuelto, calculali the store's expected operating cost of it prints .620 Jerseys. y = at by е resie • Total cost $ 3534.86 + $8.57 1620 ) Jerseys. = = $3534086 +85313644 - ISO 8848.26