Table 14.11 a Sales Manager Wants to Forecast Monthly Sales of the of the Machines

question 144

Multiple Choice

Table 14.11
A sales manager wants to forecast monthly sales of the machines the company makes using the following monthly sales data.

-Use the information in Table 14.11.Use the 3-month weighted moving-average method to calculate the forecast for month 9.The weights are 0.60,0.30,and 0.10,where 0.60 refers to the most recent demand.

• A)$3,916
• B)$3,880
• C)$3,396
• D)$3,229

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Definitions:

Minimum Required Rate

The lowest acceptable rate of return on an investment, as determined by management or investors.

Residual Income

The amount of income that an individual or company retains after accounting for all operating expenses and cost of capital.

Operating Assets

Assets that are used by a company in its daily operations to generate revenue, excluding any investment or non-operational assets.

Net Operating Income

The profit derived from a company's regular business activities, excluding deductions of interest and taxes.