French 1003A/B Chapter 3 and 4: French 1003A/B Chapter 3 and : French 1003A/B Chapter 3 and: French 1003A/B Chapter 3 an: French 1003A/B Chapter 3 a: French 1003A/B Chapter 3 : days of the week and month and 1002
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Consider the following actual data for sales during the 12 months of 2012.
(a) Fill in the third column of 3-month moving average.
(b) Calculate the forecast value of sales in January of 2013.
(c) Calculate the forecast value of sales in February 2013 if January sales turn out to be 70,937.
(d) Use the data in question 6 to calculate 5-month weighted moving average to obtain the forecast value of sales in January 2013 if the last 5 months of 2012 are weighted by 0.12, 0.17, 0.15, 0.21, 0.19, respectively
| Month | Actual Sales | Three-Month Moving Average | MAD1 | MAD2 |
| January | 71,290 | |||
| February | 70,912 | |||
| March | 62,540 | |||
| April | 64,258 | |||
| May | 68,912 | |||
| June | 70,512 | |||
| July | 72,436 | |||
| August | 70,887 | |||
| September | 68,500 | |||
| October | 64,312 | |||
| November | 61,850 | |||
| December | 66,275 |
Lancer Audio produces a high-endDVD player that sells for $1,300. Total operating expenses for thepast 12 months are as follows:
|
Required
| a. | Use the high-low method to estimate fixed and variablecosts. |
| b. | Based on these estimates, calculate the break-even level ofsales in units. (Round to the nearest whole unit.) |
| c. | Calculate the margin of safety for the coming August assumingestimated sales of 175 units. |
| d. | Estimate total profit assuming production and sales of 175units. |
| e. | Comment on the limitations of the high-low method in estimatingcosts for Lancer Audio. |
