Required Information Exercise 5-44, 5-45, 5-46, 5-47, 5-48, 5-49, and 5-50 (Static) (LO 5-1, 2, 3) [The following information applies to the questions displayed below.] Waveney DIY Centers (WDC) operates a few dozen stores in the eastern United States. The stores are popular with home remodelers, contractors, and do-it-yourself customers. The managers at Waveney are interested in understanding what drives costs as well as getting better cost estimates when planning new stores. The area manager for the Southeast Region is interested in new data analysis approaches to management and offered to run a test using data from the 14 stores in the region. The initial thoughts of the managers and the financial analysts in the region were that two primary factors drove store costs: store area (square footage) and revenue. The following data were collected from the most recent year of operations (revenues and costs in thousands of dollars). Revenues ($800) Costs (5000) Area Store SE-01 SE-02 (Square Feet) $ 20,545 69,147 $ 15,799 15,482 51,417 12,495 SE-03 25,721 83,331 19,210 SE-04 19,389 61,374 15,079 SE-05 19,666 58,509 15,112 SE-06 17,756 67,374 14,099 SE-07 24,505 95,748 18,691 SE-08 12,701 46,098 10,747 SE-09 23,081 78,012 17,453 SE-10 15,830 62,055 12,864 SE-11 20,358 65,601 15,633 SE-12 17,120 72,693 13,797 SE-13 13,674 62,055 11,570 SE-14 22,904 74,466 17,294 Exercise 5-49 (Static) Methods of Estimating Costs: Simple Regression (LO 5-1, 3) Results from a regression of store costs on store area are as follows. Equation: Store costs = $3,025.02 (in thousands) + ($0.176 x Area) Statistical data Correlation coefficient R2 Required: 0.863 0.745 The managers in the region are interested in opening a new store with expected area of 50,000 square feet. Assuming the data and cost estimates from the current stores are appropriate for the new store (SE-18), what are the estimated store costs for store SE-18 using the results from this regression? Note: Do not round your Intermediate calculations. Enter your answer in thousands of dollars rounded to 2 decimal places. Store cost