Sporting Goods is a locally owned store that specializes in printing team jersey

Question

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 Larry's prints everything from bowling team jerseys to fraternity/sorority apparel to special event shirts, summer league baseball and softball team jerseys are the company's biggest source of revenue.

Using the high-low method, calculate the store's total fixed operating costs and variable operating cost per uniform. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)

A portion of Larry's operating information for the company's last year follows:

Explanation / Answer

december has the lowest operating rate.
and
may has the highest
x2 = 675, y2= 9770

x1= 175, y1= 4800

variable cost per unit = (9770-4800)/(675-175) = $9.94

fixed cost = 9770-(9.94*675) = $3060.5

Month Number of
Jerseys Printed Operating
Cost January 215 5,835 February 195 5,685 March 230 5,930 April 550 8,575 May 675 9,770 June 655 9,260 July 455 6,230 August 375 6,175 September 310 6,005 October 230 5,960 November 185 4,960 December 175 4,800

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