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: Number of. Jerseys Month January 215 Operating Cost $ 5,865 February 205 5,680 March 230 5,925 April 510 8,680 May June 705 9,705 610 9,235 July 420 6,240 August 340 6,170 September 305 6,050 October 230 5,960 November 185 4,990 170 4,890 December 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 435 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: Number of. Jerseys Month January 215 Operating Cost $ 5,865 February 205 5,680 March 230 5,925 April 510 8,680 May June 705 9,705 610 9,235 July 420 6,240 August 340 6,170 September 305 6,050 October 230 5,960 November 185 4,990 170 4,890 December 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 435 jerseys.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Vinubhai
![PA5-2 (Algo) 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:
Operating
Cost
Number of
Month
Jerseys
January
215
$ 5,865
February
205
5,680
March
230
5,925
April
510
8,680
May
705
9,705
June
610
9,235
July
420
6,240
August
340
6,170
September
305
6,050
October
230
5,960
November
185
170
4,990
4,890
December
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 435 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.
Variable Cost per Jersey
Fixed Cost
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Transcribed Image Text:PA5-2 (Algo) 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:
Operating
Cost
Number of
Month
Jerseys
January
215
$ 5,865
February
205
5,680
March
230
5,925
April
510
8,680
May
705
9,705
June
610
9,235
July
420
6,240
August
340
6,170
September
305
6,050
October
230
5,960
November
185
170
4,990
4,890
December
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 435 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.
Variable Cost per Jersey
Fixed Cost
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1 of 2
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