Whether the fixed cost of production helps to decide the quantity to product. Introduction: Forecasting is a technique of predicting future events based on historical data and projecting them into the future with a mathematical model. Forecasting may be an intuitive or subjective prediction.

Question

Want to see the full answer?

Answer 1

Question

Chapter 14.4, Problem 12P

Summary Introduction

To determine: Whether the fixed cost of production helps to decide the quantity to product.

Introduction: Forecasting is a technique of predicting future events based on historical data and projecting them into the future with a mathematical model. Forecasting may be an intuitive or subjective prediction.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

You are a new salesperson at a large software manufacturing firm. It is three weeks from the end of the sales quarter and you and your sales manager have both already met your sales quotas for the quarter. In addition, you just closed another deal with a new customer for $100,000 worth of software and customer service. This order would put you way over your sales quota for the current quarter. Your manager suggests that you hold this new order so it gets recorded against next quarter. She explains that because sales during the next three months tend to slow down, salespeople frequently miss their quotas and associated sales bonuses for that quarter. Holding this large order to next quarter would help you get an excellent start and almost guarantee that you meet your quota. What would you do?

Create a spreadsheet to calculate your projected total costs, total revenues, and total profits for giving a seminar on cost estimating. Make the following assumptions: You will charge $600 per person for a two-day class. You estimate that 30 people will attend the class, but you want to change this input. Your fixed costs include $500 total to rent a room for both days, setup fees of $400 for registration, and $300 for designing a postcard for advertising. Youwill not include your labor costs for this estimate, but you estimate that you will spend at least 150 hours developing materials, managing the project, and giving the actual class. You would like to know what your time is worth given different scenarios. Youwill order 5,000 postcards, mail 4,000, and distribute the rest to friends and colleagues. Yourvariable costs include the following: $5perperson for registration plus 4 percent of the class fee per person to handle credit card processing; assume that everyone pays…

You are the owner of Caché, a chain of women's clothing boutiques. Your state has a sales tax of 7%, and your city has an additional sales tax of 1.5%. Each quarter you are responsible for making these tax deposits to the city and state. Last quarter your stores had total revenue, including sales tax, of $488,250. a) How much of this revenue was sales (in $) and how much was sales tax (in $)? sales sales tax b) How much sales tax (in $) should be sent to the city? c)How much sales tax (in $) should be sent to the state?