Exhibit 11.5 The Following Questions Use the Data Below

question 78

Multiple Choice

Exhibit 11.5
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 multiplicative seasonal effects model.
-Refer to Exhibit 11.5. What are predicted sales for time period 13 using the data in the spreadsheet?

• A) 1259 ≤ predicted sales < 1260
• B) 1938 ≤ predicted sales < 1939
• C) 2090 ≤ predicted sales < 2091
• D) 2187 ≤ predicted sales < 2188

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Definitions:

Machine Hours

A measure of production time, referring to the total hours that machinery is operational within a specific period.

Maintenance Cost

Maintenance cost is the total expense incurred in keeping an asset in good working condition, including costs for repairs, replacements, and preventive measures.

Administrative Expense

Overhead or general expenses related to the administration of a business, not directly tied to any specific department or product.

Expected Net Income

The projected profit of a business after all expenses and taxes have been deducted from total revenue.