Pilgrim Fitness makes various devices for personal fitness tracking. One of its wellestablished products is a low-eost band, the PF-24, meant to compete with more sophisticated smart watehes and ether expensive devices. The PF-24 has been on the market for 18 months, and the manapers at Pilgrim Fitness belleve it has at least anothet 24 months before it becomes obsolete an any price. Recently, Plerim Fitness was approached by Banneker Ltd, an international electronics company. Banneker proposed that it produce the PF-24 for Pigrim Fitness. Banseker would ke responsible for the total production effort, froen purchasing materials to shipping the finished devices to various Pilgrim warchouses around the country. Because Pilgrim kases the manufacturing facility wbere the PF=24 is made and because that facility has no ofher use for Pilgrim, it could avoid all nanufacturing cosis of the PF-24, both direct costs and all overhead, if it purchased the PF-24 from Banneker. Banneker has stated that it would be willing to sell the PF.24 to Pilgrim for $15 pcr unit, for up to 200,000 units per month. The special stadies team in the conroller's office at Pilgrim has been charged with making a recommendation to senior manapement regarting the Banneker proposal. Engineers at the manufacturing facility report that the direct eosts (materials and labor) for the PF.24 amoust to \$5 per unit. After some internal discussion with the operations team at the manufactariag factlity, the special studies team agreed that data from the last 12 months of manufacturing would be representative of the overtead cost for the PF.24. The data the team collected follow: a. Prepare a scattergraph of the Pilgrim Fitness data, relating total overhead costs to units produced. b. Use high-low analysis to determine an overhead cost estimation model for the production of the PF-24 device. c. Based on the results of a and b, recommend an overhead cost estimation model for the PF-24. d. Prepare a report for the senior management at Pilgrim Fitness recommending a decision on the Banneker proposal. Be sure to include a discussion of the analysis that led to your recommendation along with any visual materials you have to help support your conclusions