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Law Incorporation [45]
2 years ago
10

Given the following history, use a three-quarter moving average to forecast the demand for the third quarter of this year. Note,

the 1st quarter is Jan, Feb, and Mar; 2nd quarter Apr, May, Jun; 3rd quarter Jul, Aug, Sep; and 4th quarter Oct, Nov, Dec.
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Last year 130 150 155 215 225 230 175 165 155 230 255 280
This year 155 155 205 220 245 250
Business
1 answer:
rusak2 [61]2 years ago
5 0

Answer:

665

Explanation:

The computation fo the demand expected for the third quarter is as follows:

Oct         230

Nov        255

Dec         280          sum 765

Jan          155

Feb          155

March      205         sum 515

April         220

May          245

June         250       sum 715

Mow the third quarter moving average is

= (765 + 515 + 715) ÷ 3

= 665

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Current operating income for Bay Area Cycles Co. is $34,000. Selling price per unit is $100, the contribution margin ratio is 25
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Selling price = $100

margin ratio = 25%

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Bay Area Cycle’s break even point in units and total sales dollars

solution

we get here first break even point that is express as

break even point in unit =  \frac{fixed\ cost}{contribution\ per\ unit}   ..................1

break even point in unit =  \frac{136000}{100*0.25}

break even point in unit =5440 units

so

break even point in sales =  \frac{fixed\ cost}{margin\ ratio}   ..................2

break even point in sales = \frac{136000}{0.25}

break even point in sales = $544000

and

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total sale =  \frac{operating\ income+ fixed\ expense}{margin\ ratio}   ..................3

total sale =  \frac{34000+136000}{0.25}

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