Point Products produces field hockey balls, which are packaged in cases. The balls are produced in a single plant. Because of the nature of the production process at Point Products, overhead includes all labor costs. Data on production output (in cases) and total overhead costs (in thousands of dollars) from the past 15 months follow: Month Cases Costs 1 4,426 $ 461.4 2 3,291 239.4 3 5,334 558.1 4 4,313 433.8 5 3,745 347.6 6 4,313 321.3 7 6,129 542.9 8 2,951 153.4 9 4,994 488.8 10 3,972 275.9 11 4,199 437.9 12 4,653 302.3 13 3,972 195.8 14 4,767 502.5 15 3,178 238.8 Using the data above, the cost analyst at Point Products ran a regression analysis of overhead costs on number of cases with the following results: Dependent variable: Monthly overhead costs Independent variable: Production output (cases) Computed values: Intercept 199.7 Coefficient on cases 0.132 R2 0.715 At the same time, the cost analyst, working with the plant manager, started an account analysis of the individual overhead accounts. They estimated a fixed cost per month of $22,600 and a variable cost per case of $80. The managers at Point Products are uncertain what to do with these costs estimation results. Specifically, they are uncertain which, if either, method (account analysis or regression analysis) they should use or whether it may depend on the information they want for making their decisions. They ask you for your recommendations. Required: Write a memo with your recommendation about when or how to use these analyses. Be sure to state your reasons and provide any visual information that would help explain your reasoning.