Question

ork 5 Help Save & Exit Sube Check my world 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 Jerseys Operating Month Printed Cost January 210 $5,745 February 5,850 March 540 8,645 April 690 9,750 May 625 9,250 June 460 6,210 July 385 6,125 August 245 5,930 September 195 4.800 October 290 6,015 November 255 5,960 December 200 4,955 220 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 < Prev 5 of 11 !!! Next >

Answer 1

store's high-low method, Calculate the Operating costs and 3) Aws Using the total fired Variable Operating cost bey jersèy. Highest Activity Cost = lowest Activity cost Highest Activity Production = Lowest Activity Production 9,750 = 4.800 690 195 Variable Cost per Jersey HighestActivity cost lowest Activity cost Highest Activity Production - Lowest Activity Production 9.750 690 4.800 195 4.950 495 Ivariable Variable cost per Jersey = $10 Per Jersey. Aug Let's take Highest Activity Cestand Production for Computation of fined cost Highest Activity - ( variable cast x Highest Cost Activity Production) - Per Jersey

9.750 (10 X 690) 9,750 6,900 Fired Cost = $ 2,850 Aus 4) Aws Calculate the Slove's expected Operating Lost if it printed 475 jerseys (Units) 475 jerseys. In Total Cost - fired cost 2.850 + Variable cost + (10 x 475) = = 2,850 +4.750 Total Total Cost 7,600 Aue

5) Aus Mouth No. of Jersey Printed (x) Operating cost Ly Amount (xx X2 January February March April May June July August 210 220 540 690 625 460 385 245 195 290 255 200 $ 5,745 5,850 8,645 9,750 9, 250 6,210 6, 125 5,930 4,800 6,015 5,960 4,955 44100 1;206,450 48400 1,287,000 291,600 4,668,300 476,100. 6,727,500 390,625 5,781,250 211,600 2,856,600 148,225 2,358,125 60,025 1,452,850 38025 936,000 84,100 1,744,350 65,025 4519,800 40.000 991,000 September October November December Total 4.315 79.235 1897,825 31,529,225 Here, 12 Ex = 4,315 Eyz 79,235 Ex2= 1,897,825 EXY = 31,529,225

Variable Cost Per Un't = (12x31,529,225) – (4,315 x 79,235) RX4,897,825 (4,345) 2 378,350700 22,773,900 341,898,025 18,619, 225 36, 452,675 4,154,675 Travable cost per unit = $8.77 Total fined cost fined cost = 79, 235 ($8.77 X 4,315) 12 = 79,235 - 37,842.55 12 a 41,392.45 12 Total fired Cost = $3,449.37 X Intercept $-3449.34 $ 8.77 Aug variable i

6) Aus linear Equation y = at bu where, a fined cost b= variable cost per Unit Y = Eupected Operating cost X = Units Produced. The Regression equation will be as follocus :- Y = 3,449,37 + 8.77x Total cost Y a Aug 3,449.37 + 8.77 x (number of Torseys 7 Ans ) Expected Operating cost for 605 Units (forsy Ya 3,449.37 + 23,449.37 +(8.77) x (605) 8.77 x = 3,449.37 +5,305.85 Total Cost 'Y = $8,755.22 Dual