The Business Analyst for Video Sales, Inc What Is the Forecast for This Year Using a Three-Year

question 24

Multiple Choice

The business analyst for Video Sales, Inc. wants to forecast this year's demand for DVD decoders based on the following historical data: $$\begin{array} { l l } \text { Year } & \text { Demand } \\\hline \text { 5 years ago } & 900 \\\text { 4 years ago } & 700 \\\text { 3 years ago } & 600 \\\text { 2 years ago } & 500 \\\text { Last year } & 300\end{array}$$ What is the forecast for this year using a three-year weighted moving average with weights of .5, .3, and .2?

• A) 163
• B) 180
• C) 300
• D) 420
• E) 510

Understand the basic principles of cost-volume-profit (CVP) analysis and its limitations.

Calculate and interpret the break-even point in units and dollars.

Apply sensitivity analysis to assess changes in profit related to variations in selling prices, costs, and volume.

Determine operating leverage and its impact on profits.

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Definitions:

Alcohol Intake

The consumption of beverages that contain ethanol, commonly referred to as alcohol, which can have various health impacts.

Fluid Wave

A physical examination technique used to detect ascites, where a wave-like motion is felt when tapping on one side of the abdomen while the other side is compressed.

Ascites

The accumulation of fluid in the peritoneal cavity, causing abdominal swelling. Often associated with liver disease, such as cirrhosis.

Splenomegaly

An abnormal enlargement of the spleen, which can be caused by various diseases or conditions affecting the spleen's ability to filter blood.