Leslie Sporting Goods is a locally owned store that specializesin printing team jerseys. The majority of its business comes fromorders for various local teams and organizations. While Leslie’sprints everything from bowling team jerseys to fraternity/sororityapparel to special event shirts, summer league baseball andsoftball team jerseys are the company’s biggest source ofrevenue.
A portion of Leslie’s operating information for the company’s lastyear follows:
| Month | Number of Jerseys Printed | Operating Cost |
| January | 215 | $5,830 |
| February | 210 | 5,785 |
| March | 235 | 5,945 |
| April | 550 | 8,640 |
| May | 685 | 9,755 |
| June | 615 | 9,290 |
| July | 450 | 6,245 |
| August | 365 | 6,175 |
| September | 325 | 6,045 |
| October | 245 | 5,965 |
| November | 190 | 4,990 |
| December | 185 | 4,890 |
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Required:
3. Using the high-low method, calculate the store’s totalfixed 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" answerto the nearest whole number.)
4. Using the high-low method results, calculatethe store’s expected operating cost if it printed 440 jerseys.(Do not round your intermediate calculations. Round youranswer to the nearest whole number.)
5. Perform a least-squares regression analysis onLeslie’s data. (Use Microsoft Excel or a statisticalpackage to find the coefficients using least-squares regression.Round your answers to 2 decimal places.)
6. Using the regression output, create a linearequation (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 650jerseys. (Round your intermediatecalculations to 2 decimal places. Round your final answerto 2 decimal places.)
