(8) 6. Manufacturing of a product requires a fixed cost of $7,500 per year and a variable cost of $4/unit. The sales revenue is $9/unit. If a profit of $1,500 is desired, how many units must be sold? 7. In a retail store, the monthly sales of an item depend on the price of the item in that month. Historical data is shown below. Excel was used to arrive at a forecast model and the regression results are as indicated below. Price (in $) Sales (in $1000) $12 13 50 30 TT 10 12.5 75 65 45 Regression Statistics Multiple R -0.97 R Square 0.94 Adjusted R Square 0.92 Standard Error 4.83 Observations 5 Intercept Coefficients 165.0 X Variable 1 -9.9 Standard Error 16.0 1.4 t Stat P-value 10.3 0.0 Lower 95% 114.0 Upper 95% 216.0 -7.1 0.0 -14.4 -5.44 (12) a. Show the forecast model (regression line equation) and calculate sales in dollars if the item price is set at $11.50 in a given month. (5) b. Interpret the value obtained for the slope of the regression line. (5) c. Interpret the value of the coefficient of determination for the above problem.