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The Hereford Plant produces a single part used In alrplane hydraulic systems. The plant manager has asked the plant controller to determine the monthly volume that would result in the plant meeting its monthly operating profit goal. Operating profits at the plant are calculated as revenue less dlrect costs (materlal and labor) less overhead (both fixed and varlable). The monthly profit goal is $78,000 before taxes. The plant sells the part for $205 per unit. Direct costs are $102 per unit. Using the high-low approach, an analyst In the controller's office has estimated overhead costs at $24,440 per month for fixed overhead costs and $80 per unit for varlable overhead costs. One of the other cost analysts decided to run a simple regression and based on that reported that, "a better cost estimation equation was" Monthly overhead =$65,420+$72 per unit The analyst reported that the R2 was about 66% and that the estimated coefficient for the intercept was "not significant." The data the controller's office used for both analyses follow: The company controller Is surprised that the cost estimates are so different and would like to reconcile this before reporting back to the plant manager. Perform a regression analysis in Excel to determine the regression coefficlents for the data using high-low method. Answer is complete and correct. Perform a regression analysis in Excel to determine the regression coefficlents for the data using simple regression. Note: Round your final answers to the nearest whole dollar value. Re-run the regression model without the data of Month 9 to determine the regression coefficlents for the data. Note: Round your final answers to the nearest whole dollar value. Answer is complete and correct. Determine the estimate to the controller of the volume (In units) that will generate $78,000 per month in operating profits before taxes. Note: Round your Intermedlate calculations and final answer to the nearest whole number

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