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 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 | 200 | $5,785 |
February | 220 | 5,865 |
March | 535 | 8,635 |
April | 675 | 9,725 |
May | 630 | 9,275 |
June | 430 | 6,245 |
July | 340 | 6,170 |
August | 250 | 5,940 |
September | 175 | 4,880 |
October | 320 | 6,050 |
November | 260 | 5,980 |
December | 195 | 4,930 |
Required:
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 635 jerseys. (Round your intermediate calculations to 2 decimal places. Round your final answer to 2 decimal places.)
Managerial Accounting
ISBN: 978-0078025518
2nd edition
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips