The Flint Fan Corporation Is Considering the Addition of a New

question 107

Multiple Choice

The Flint Fan Corporation is considering the addition of a new model fan, the F-27, to its current products.The expected cost and revenue data for the F-27 fan are as follows: If the F-27 is added as a new product, it is expected that the contribution margin of other products will drop by $7, 000 per year. If the F-27 product is added next year, the change in operating income should be:

• A)$30, 000 increase
• B)$5, 000 decrease
• C)$23, 000 increase
• D)$15, 000 increase

Describe the importance of using recent data in forecasting and the impact of trends on forecast accuracy.

Explain the process and significance of using moving averages in forecast calculations.

Recognize the application and calculation of weighted moving average forecasting.

Comprehend the role of smoothing constants in exponential smoothing and their adjustment for error minimization.