Waveney DIY Centers (WDC) operates a few dozen stores in the eastern United States. The stores arepopular with home remodelers, contractors, and do-it-yourself customers. The managers at Waveney areinterested in understanding what drives costs as well as getting better cost estimates when planning newstores. The area manager for the Southeast Region is interested in new data analysis approaches tomanagement 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 factorsdrove store costs: store area (square footage) and revenue. The following data were collected from the mostrecent year of operations (revenues and costs in thousands of dollars).RevenuesStore ($000)$SE-0120,545SE-02 15,482SE-03 25,721SE-04 19,389SE-05 19,666SE-06 17,756SE-07 24,505SE-08 12,701SE-09 23,081SE-1015,83020,35817, 120SE-11SE-12SE-13 13,674SE-1422,904Area(SquareFeet)69, 14751,41783,33161,37458,50967,37495,74846,09878,01262,05565,60172,69362,05574,466Variable costFixed costCosts($000)$Required:a. Use the high-low method to estimate the fixed and variable portions of store costs based on store area.b. 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-16), what are theestimated store costs for store SE-16?Required Required RequiredABс15,79912,49519,210c. Managers are also considering a concept store focused on downtown home and condo owners. These stores wouldhave a much smaller area and carry a narrower range of products. The managers envision such stores being anaverage of 35,000 square feet. What are the estimated store costs for the average concept store?15,07915,11214,09918,69110,74717,45312,86415,63313,79711,57017,294Complete this question by entering your answers in the tabs below.Use the high-low method to estimate the fixed and variable portions of store costs basedon store area.per squarefootNote: Round variable cost answer to 2 decimal places. Enter Fixed cost answer inthousands of dollars rounded to 2 decimal places.Show less

High Low Method os used to segregate the Variable cost and fixed cost in Semi Variable cost. The…

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 Store ($000) $ SE-01 20,545 SE-02 15,482 SE-03 25,721 SE-04 19,389 SE-05 19,666 SE-06 17,756 SE-07 24,505 SE-08 12,701 SE-09 23,081 SE-10 15,830 SE-11 20,358 SE-12 17, 120 SE-13 13,674 SE-14 22,904 Area (Square Feet) 69, 147 51,417 83,331 61,374 58,509 67,374 95,748 46,098 78,012 62,055 65,601 72,693 62,055 74,466 Variable cost Fixed cost Costs ($000) $ Required Required Required A B с 15,799 12,495 19,210 Required: a. Use the high-low method to estimate the fixed and variable portions of store costs based on store area. b. 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-16), what are the estimated store costs for store SE-16? 15,079 15,112 c. Managers are also considering a concept store focused on downtown home and condo owners. These stores would have a much smaller area and carry a narrower range of products. The managers envision such stores being an average of 35,000 square feet. What are the estimated store costs for the average concept store? 14,099 18,691 10,747 17,453 12,864 15,633 13,797 11,570 17,294 Complete this question by entering your answers in the tabs below. per square foot Use the high-low method to estimate the fixed and variable portions of store costs based on store area. Note: Round variable cost answer to 2 decimal places. Enter Fixed cost answer in thousands of dollars rounded to 2 decimal places. Show less