Exhibit 11.6 The Following Questions Use the Data Below

question 10

Multiple Choice

Exhibit 11.6
The following questions use the data below.
A store wants to predict quarterly sales. The owner has collected 3 years of sales data and wants your help in analyzing the data using the double moving average model with k = 4.
-Refer to Exhibit 11.6. What formula should be entered in cell F9 to compute the second average when using the double moving average method with k = 4?

• A) =Average($E$3:$E$9)
• B) =Average($D$3:$D$9)
• C) =Average(D3:D9)
• D) =Average(D6:D9)

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Definitions:

Selling Price

The amount of money charged for a product or service, which can influence demand and revenue.

Contribution Margin Ratio

The ratio of contribution margin to sales revenue, used to measure the profitability and efficiency of a product or service.

Margin Of Safety

The difference between the actual or expected profitability of a project and the break-even point. It is a cushion against uncertainty.

Net Operating Income

The profit generated from a company's everyday operations, calculated by subtracting operating expenses from operating income.