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

## 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 Leslieâ€™s prints everything from bowling team jerseys to fraternity/sorority apparel to special event shirts, summer league baseball and softball team jerseys are the companyâ€™s biggest source of revenue. A portion of Leslieâ€™s operating information for the companyâ€™s last year follows:

Required:

1. Prepare a scatter graph of Leslieâ€™s operating cost and draw the line you believe best fits the data.

2. Based on this graph, estimate Leslieâ€™s total fixed costs per month.

3. Using the high-low method, calculate the storeâ€™s total fixed operating costs and variable operating cost per jersey.

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

5. Perform a least-squares regression analysis on Leslieâ€™s data.

6. Using the regression output, create a linear equation (y = a + bx) for estimating Leslieâ€™s operating costs.

7. Using the least-squares regression results, calculate the storeâ€™s expected operating cost if it prints 625jerseys.

## Step by Step Answer:

**Related Book For**

## Managerial Accounting

**ISBN:** 978-0078025518

2nd edition

**Authors:** Stacey Whitecotton, Robert Libby, Fred Phillips