THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 73

Essay

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
The data values in the table below show quarterly sales of a corporation over a period of six years.

-Construct a time plot of this series,and discuss its features.

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Definitions:

Break-even Sales

Break-even Sales represent the amount of revenue needed to cover all fixed and variable costs, at which point a business does not make a profit or incur a loss.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, determined by the proportion of fixed versus variable costs a company has.

Operating Income

Earnings from a company’s core business operations, excluding deductions for interest and taxes.

Variable Costs

Costs that fluctuate in direct proportion to changes in levels of production or sales volumes.