You have been asked to forecast the sales of your lead product over the next 2 years. You have access to sales figures for the past 5 years. Using the sales forecasting spreadsheet and the numbers from the past 5 years, shown below, what are the expected sales in year 7? Year Units Sold 3 10000 4 10000 11000 13000 12500 QUESTION 2 According to your Average Total Cost Curve (ATC), average production costs per unit in the range of 14,000 units per year is $850 per unit. Marketing has decided the price should be $1000 per unit for the next 2 years. What is the estimated Net Income from the production operations in Year 7, using your answer from question 1 on this exam?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter13: Regression And Forecasting Models
Section13.6: Moving Averages Models
Problem 22P: The file P13_22.xlsx contains total monthly U.S. retail sales data. While holding out the final six...
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1

You have been asked to forecast the sales of your lead product over the next 2 years. You have access to sales
figures for the past 5 years. Using the sales forecasting spreadsheet and the numbers from the past 5 years,
shown below, what are the expected sales in year 7?
Year
Units Sold
1
10000
4
5
12500
11000
10000
13000
QUESTION 2
According to your Average Total Cost Curve (ATC), average production costs per unit in the range of 14,000 units
per year is $850 per unit. Marketing has decided the price should be $1000 per unit for the next 2 years. What is
the estimated Net Income from the production operations in Year 7, using your answer from question 1 on this
exam?
Transcribed Image Text:You have been asked to forecast the sales of your lead product over the next 2 years. You have access to sales figures for the past 5 years. Using the sales forecasting spreadsheet and the numbers from the past 5 years, shown below, what are the expected sales in year 7? Year Units Sold 1 10000 4 5 12500 11000 10000 13000 QUESTION 2 According to your Average Total Cost Curve (ATC), average production costs per unit in the range of 14,000 units per year is $850 per unit. Marketing has decided the price should be $1000 per unit for the next 2 years. What is the estimated Net Income from the production operations in Year 7, using your answer from question 1 on this exam?
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