Given the Following Historical Data, What Is the Simple Three-Period

question 116

Multiple Choice

Given the following historical data, what is the simple three-period moving average forecast for period 6?

• A)67
• B)115
• C)69
• D)68
• E)68.67

---

Definitions:

Contribution Margin

The amount by which sales revenue exceeds variable costs, indicating how much revenue contributes towards covering fixed costs and generating profit.

Machine Time

The amount of time a machine is in operation, used to calculate manufacturing costs and efficiency in production processes.

Product Demand

The quantity of a product or service that consumers are willing and able to purchase at various prices during a specified time period.

Contribution Margin

The residual sum from sales income once variable expenses are subtracted, showing the extent to which it helps cover fixed expenses and create profit.