You are the new assistant controller for Pools Unlimited Furniture Division. The controller just assigned you the task of determining the sales volume needed if the division is to meet the board of directors performance expectations. After a meeting the the staff, they developed the following for your analysis and interpretation. Direct materials Direct labor (hours) Hourly wage rate Lounge Chairs Table and Firepit and Chairs Chairs 50 $ 76 $ 135 2 16 The controller is particularly concerned about the estimation of overhead. The staff has provided information on one area of overhead, parts cutting, because it is classified as indirect labor and it is a substantial part of overhead costs. Number of cuts per product 15 21 49 Overhead costs (monthly) Cuts Cost January 16,000 $ Analyze these data using the high-low 10,000 method February 11,000 $ 9,000 March 15,000 $ 10,000 April 38,000 $ 21,000 May 52,000 $ 26,000 June 40,000 $ 20,000 July 32,000 $ 17,000 August 25,000 $ 15,000 September 21,000 $ 14,000 October 22,000 $ 15,000 November 24,000 $ 19,000 23,000 $ 20,000 Decenber As per your instructions, all other overhead was combined and regression was performed. Below is part of the resulting regression output, based on annual data Coefficient P-value Intercept $ 52,000 0.00001 Number of units produced $ Direct labor hours 0.80 0.00267 $ 0.45 0.01650 The sales team has assessed the market and determined the following prices for the furniture divisions products: Sales price per unit Pool furniture is sold in the following amounts: Lounge Chairs $ 8 Table and Firepit and Chairs Chairs 250 $ 400 $ 850 6 2 $ 850,000 The Board of Directors target profit for the futniture division: Determine the number of units of each product that must be sold to meet the Board's expectation Develop a contribution margin income statement, by product and it total, to support the sales amount determined to meet the Board's expectations. DOCUMENT ALL CALCULATIONS 24