Table 6 -1. Actual Sales Data

question 23

Multiple Choice

Table 6 -1. Actual Sales Data

-Refer to Table 6 -1. Using the exponential smoothing model with an a of 0.2 and a smoothed forecast for period 1 of 350, what is the forecast for period 2?

• A) 349
• B) 355
• C) 369
• D) 385
• E) 402

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Definitions:

Marginal Cost

The uptick in cost associated with producing an extra unit of a product or service.

Allocative Efficiency

A state of the economy in which production represents consumer preferences; in other words, every good or service is produced up to the point where the last unit provides a benefit to consumers exactly equal to the cost of producing it.

Product Mix

The total range of products that a company offers for sale, encompassing different lines, variations, and services to meet consumer needs.

Marginal Cost

The cost of producing one additional unit of a good or service, which can vary depending on the level of production.