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 January February March April May June July August September October November December Number of Jerseys 170 215 195 545 635 710 450 295 370 270 270 185 Operating Cost $ 4,805 5,840 5,770 8,610 9,275 9,800 6,240 6,005 6,145 5,985 5,930 4,950 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 425 jerseys.
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 January February March April May June July August September October November December Number of Jerseys 170 215 195 545 635 710 450 295 370 270 270 185 Operating Cost $ 4,805 5,840 5,770 8,610 9,275 9,800 6,240 6,005 6,145 5,985 5,930 4,950 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 425 jerseys.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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
January
February
March
April
May
June
July
August
September
October
November
December
Number of
Jerseys
170
215
195
545
635
710
450
295
370
270
270
185
Operating
Cost
$4,805
Variable Cost per Jersey
Fixed Cost
5,840
5,770
8,610
9,275
9,800
6,240
6,005
6,145
5,985
5,930
4,950
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 425 jerseys.
Complete this question by entering your answers in the tabs below.
Required 3 Required 4
Using the high-low method, calculate the store's total fixed operating costs and variable operating cost per jersey.
Note: Do not round your intermediate calculations. Round your "Variable Cost" answer to 2 decimal places and "Fixed Cost"
answer to the nearest whole number.
Required 4 >
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