Cost estimation using regression analysis. The Anne Louie's Accounting Company prepares tax returns for small businesses. Data on the company's total costs and output for the past six months appear in the table that follows. The results of regression analysis are also provided.

a. Plot the data and the regression line on a graph. (See Problem 3.4 for Self-Study.)

b. Estimate total monthly costs for a month when 500 tax returns are prepared, using the estimates from the regression output.

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Tax Returns Total Month January. February Prepared Costs 200 $160,000 280 192,000 March. 300 198,000 April 260 180,000 May 260 186,000 June 240 170,000 Regression output: TC $78.045 + ($401 x Number of Tax Returns).