Practical Management Science
Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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Question

1

You have been asked to forecast the sales of your lead product over the next 2 years. You have access to sales
figures for the past 5 years. Using the sales forecasting spreadsheet and the numbers from the past 5 years,
shown below, what are the expected sales in year 7?
Year
Units Sold
1
10000
4
5
12500
11000
10000
13000
QUESTION 2
According to your Average Total Cost Curve (ATC), average production costs per unit in the range of 14,000 units
per year is $850 per unit. Marketing has decided the price should be $1000 per unit for the next 2 years. What is
the estimated Net Income from the production operations in Year 7, using your answer from question 1 on this
exam?
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Transcribed Image Text:You have been asked to forecast the sales of your lead product over the next 2 years. You have access to sales figures for the past 5 years. Using the sales forecasting spreadsheet and the numbers from the past 5 years, shown below, what are the expected sales in year 7? Year Units Sold 1 10000 4 5 12500 11000 10000 13000 QUESTION 2 According to your Average Total Cost Curve (ATC), average production costs per unit in the range of 14,000 units per year is $850 per unit. Marketing has decided the price should be $1000 per unit for the next 2 years. What is the estimated Net Income from the production operations in Year 7, using your answer from question 1 on this exam?
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