Exhibit 11.11 The Following Questions Use the Data Below

question 23

Multiple Choice

Exhibit 11.11
The following questions use the data below.
Joe's Sporting Goods wants to forecast quarterly sales figures using seasonal indices. The store has collected 12 quarters of data and needs your help to analyze the data. The relevant regression output is in the following table.
-Refer to Exhibit 11.11. What formula should be entered in cell H3 to compute the Seasonal Forecast value for year 1 Quarter 1?

• A) =F3*VLOOKUP(B3,$B$18:$C$21,2)
• B) =F3*HLOOKUP(B3,$B$18:$B$21,2)
• C) =F3*VLOOKUP(B3,$B$18:$B$21,2)
• D) =F3*VLOOKUP(B3,$C$18:$C$21,2)

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Definitions:

Break-Even Volume

The number of units that must be sold for total revenues to equal total costs, resulting in no profit or loss.

Fixed Costs

Fixed costs are business expenses that remain unchanged regardless of the level of production or sales, such as rent, salaries, and insurance premiums.

Revenue

The total amount of money generated by the sale of goods or services related to a company's primary operations.

Variable Costs

Expenses that fluctuate with the level of output or activity, in contrast to fixed costs which remain constant.