Business, 06.10.2019 01:30 asims13

Required information [the following information applies to the questions displayed below.] davis stores sells clothing in 15 stores located around the southwestern united states. the managers at davis are considering expanding by opening new stores and are interested in estimating costs in potential new locations. they believe that costs are driven in large part by store volume measured by revenue. the following data were collected from last year’s operations (revenues and costs in thousands of dollars). store revenues costs 101 $4,260 $4,454 102 2,387 3,214 103 5,978 5,421 104 4,302 4,398 105 3,154 4,156 106 4,343 3,879 107 7,054 5,269 108 2,019 3,174 109 6,216 5,328 110 3,708 3,439 111 4,206 4,579 112 5,090 3,520 113 3,712 3,036 114 5,457 4,975 115 2,924 3,226 required a. use the high-low method to estimate the fixed and variable portions of store costs based on revenues. b. managers estimate that one of the proposed stores will have revenues of $4.1 million. what are the estimated monthly overhead costs, assuming no inflation? c. managers are also considering a "mega-store" with revenues of $26 million. what are the estimated monthly overhead costs, assuming no inflation?

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