Exhibit 11.4 The Following Questions Use the Data Below

question 105

Multiple Choice

Exhibit 11.4
The following questions use the data below.
Joe's Sporting Goods wants to forecast quarterly sales figures using the additive seasonal method. The store has collected 12 quarters of data and needs your help to analyze the data.
-Refer to Exhibit 11.4. What formula should be entered in cell E3 to compute the base level when using the additive seasonal effects method?

• A) =AVERAGE($E$3:$E$6)
• B) =AVERAGE(E3, E7, E11)
• C) =AVERAGE($D$3:$D$6)
• D) =AVERAGE(D3, D7, D11)

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Definitions:

Marginal Benefit

The additional benefit or usefulness experienced by consuming or producing another unit of a good or service.

Marginal Cost

The supplementary cost of manufacturing another unit of a product or service.

Consume

The action of using up goods and services to satisfy personal or collective wants or needs.

Opportunity Cost

The cost of foregoing the next best alternative when making a decision or choosing to do one thing over another.