PA$5-2($Static$)$ Estimating Cost Behavior Using Scattergraph and High$-$Low Methods $[$LO $5-2,5-3]$

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$$s prints everything from bowling team jerseys to fraternity or sorority apparel to special event shirts, summer league baseball and softball team jerseys are the company$$s biggest source of revenue.

A portion of Leslie$$s operating information for the company$$s last year follows:

Month Number of Jerseys Operating Cost

January $215$ $ $5,500$

February $2105,740$

March $3805,800$

April $6257,200$

May $7509,000$

June $6309,150$

July $4006,000$

August $3505,900$

September $2504,800$

October $3306,010$

November $2004,950$

December $1504,500$

Required:

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

$4.$ Using the high$-$low method results, calculate the store$$s expected operating cost if it printed $400$ jerseys.