The number of units of the device the firm should sell in order to recover its initial investment. Introduction: The concept of the number of units that a firm must sell for recovering its initial investment is termed as Break even quantity. It is calculated by finding the difference between the total fixed costs divided by selling price of each unit andthe variable costs of the good or service.

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Answer 1

Question

Chapter 1.11, Problem 38P

a.

Summary Introduction

To determine:The number of units of the device the firm should sell in order to recover its initial investment.

Introduction:The concept of the number of units that a firm must sell for recovering its initial investment is termed as Break even quantity. It is calculated by finding the difference between the total fixed costs divided by selling price of each unit andthe variable costs of the good or service.

b.

Summary Introduction

To determine:The amount of total revenue at the break-even volume.

Introduction:The breakeven volume is the volume of total cost at which costs of both internal production and external purchase become equal. The total revenue at breakeven volume is the product of the break-even units by the selling price of each unit.

c.

Summary Introduction

To determine:The potential change in break even volume when price of each device is increased to $100.

Introduction:The breakeven volume will undoubtedly change when the selling price of each unit of product is increased. In this case, since the selling price of each unit of the product is more than before, so the quantity of the product sold or break-even volume in units will be definitely lesser than initial volume.

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Scenario You have been given a task to create a demand forecast for the second year of sales of a premium outdoor grill. Accurate forecasts are important for many reasons, including for the company to ensure they have the materials they need to create the products required in a certain period of time. Your objective is to minimize the forecast error, which will be measured using the Mean Absolute Percentage Error (MAPE) with a goal of being below 25%. You have historical monthly sales data for the past year and access to software that provides forecasts based on five different forecasting techniques (Naïve, 3-Month Moving Average, Exponential Smoothing for .2, Exponential Smooth for .5, and Seasonal) to help determine the best forecast for that particular month. Based on the given data, you will identify trends and patterns to create a more accurate forecast. Approach Consider the previous month's forecast to identify which technique is most effective. Use that to forecast the next…

Approach Consider the previous month's forecast to identify which technique is most effective. Use that to forecast the next month. Remember to select the forecasting technique that produces the forecast error nearest to zero. For example: a. Naïve Forecast is 230 and the Forecast Error is -15. b. 3-Month Moving Forecast is 290 and the Forecast Error is -75. c. Exponential Smoothing Forecast for .2 is 308 and the Forecast Error is -93. d. Exponential Smoothing Forecast for .5 is 279 and the Forecast Error is -64. e. Seasonal Forecast is 297 and the Forecast Error is -82. The forecast for the next month would be 230 as the Naïve Forecast had the Forecast Error closest to zero with a -15. This forecasting technique was the best performing technique for that month. You do not need to do any external analysis-the forecast error for each strategy is already calculated for you in the tables below. Naïve Month Period Actual Demand Naïve Forecast Error 3- Month Moving Forecast 3- Month Moving…

Answer 2

Question

Chapter 1.11, Problem 38P

a.

Summary Introduction

To determine:The number of units of the device the firm should sell in order to recover its initial investment.

Introduction:The concept of the number of units that a firm must sell for recovering its initial investment is termed as Break even quantity. It is calculated by finding the difference between the total fixed costs divided by selling price of each unit andthe variable costs of the good or service.

b.

Summary Introduction

To determine:The amount of total revenue at the break-even volume.

Introduction:The breakeven volume is the volume of total cost at which costs of both internal production and external purchase become equal. The total revenue at breakeven volume is the product of the break-even units by the selling price of each unit.

c.

Summary Introduction

To determine:The potential change in break even volume when price of each device is increased to $100.

Introduction:The breakeven volume will undoubtedly change when the selling price of each unit of product is increased. In this case, since the selling price of each unit of the product is more than before, so the quantity of the product sold or break-even volume in units will be definitely lesser than initial volume.

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Answer 3

Question

Chapter 1.11, Problem 38P

a.

Summary Introduction

To determine:The number of units of the device the firm should sell in order to recover its initial investment.

Introduction:The concept of the number of units that a firm must sell for recovering its initial investment is termed as Break even quantity. It is calculated by finding the difference between the total fixed costs divided by selling price of each unit andthe variable costs of the good or service.

b.

Summary Introduction

To determine:The amount of total revenue at the break-even volume.

Introduction:The breakeven volume is the volume of total cost at which costs of both internal production and external purchase become equal. The total revenue at breakeven volume is the product of the break-even units by the selling price of each unit.

c.

Summary Introduction

To determine:The potential change in break even volume when price of each device is increased to $100.

Introduction:The breakeven volume will undoubtedly change when the selling price of each unit of product is increased. In this case, since the selling price of each unit of the product is more than before, so the quantity of the product sold or break-even volume in units will be definitely lesser than initial volume.

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Answer 4

Question

Chapter 1.11, Problem 38P

a.

Summary Introduction

To determine:The number of units of the device the firm should sell in order to recover its initial investment.

Introduction:The concept of the number of units that a firm must sell for recovering its initial investment is termed as Break even quantity. It is calculated by finding the difference between the total fixed costs divided by selling price of each unit andthe variable costs of the good or service.

b.

Summary Introduction

To determine:The amount of total revenue at the break-even volume.

Introduction:The breakeven volume is the volume of total cost at which costs of both internal production and external purchase become equal. The total revenue at breakeven volume is the product of the break-even units by the selling price of each unit.

c.

Summary Introduction

To determine:The potential change in break even volume when price of each device is increased to $100.

Introduction:The breakeven volume will undoubtedly change when the selling price of each unit of product is increased. In this case, since the selling price of each unit of the product is more than before, so the quantity of the product sold or break-even volume in units will be definitely lesser than initial volume.

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Answer 5

Chapter 1.11, Problem 38P

a.

Summary Introduction

To determine:The number of units of the device the firm should sell in order to recover its initial investment.

Introduction:The concept of the number of units that a firm must sell for recovering its initial investment is termed as Break even quantity. It is calculated by finding the difference between the total fixed costs divided by selling price of each unit andthe variable costs of the good or service.

b.

Summary Introduction

To determine:The amount of total revenue at the break-even volume.

Introduction:The breakeven volume is the volume of total cost at which costs of both internal production and external purchase become equal. The total revenue at breakeven volume is the product of the break-even units by the selling price of each unit.

c.

Summary Introduction

To determine:The potential change in break even volume when price of each device is increased to $100.

Introduction:The breakeven volume will undoubtedly change when the selling price of each unit of product is increased. In this case, since the selling price of each unit of the product is more than before, so the quantity of the product sold or break-even volume in units will be definitely lesser than initial volume.

Answer 6

Chapter 1.11, Problem 38P

a.

Summary Introduction

To determine:The number of units of the device the firm should sell in order to recover its initial investment.

Introduction:The concept of the number of units that a firm must sell for recovering its initial investment is termed as Break even quantity. It is calculated by finding the difference between the total fixed costs divided by selling price of each unit andthe variable costs of the good or service.

Answer 7

Chapter 1.11, Problem 38P

a.

Summary Introduction

To determine:The number of units of the device the firm should sell in order to recover its initial investment.

Introduction:The concept of the number of units that a firm must sell for recovering its initial investment is termed as Break even quantity. It is calculated by finding the difference between the total fixed costs divided by selling price of each unit andthe variable costs of the good or service.

Answer 8

b.

Summary Introduction

To determine:The amount of total revenue at the break-even volume.

Introduction:The breakeven volume is the volume of total cost at which costs of both internal production and external purchase become equal. The total revenue at breakeven volume is the product of the break-even units by the selling price of each unit.

Answer 9

b.

Summary Introduction

To determine:The amount of total revenue at the break-even volume.

Introduction:The breakeven volume is the volume of total cost at which costs of both internal production and external purchase become equal. The total revenue at breakeven volume is the product of the break-even units by the selling price of each unit.

Answer 10

c.

Summary Introduction

To determine:The potential change in break even volume when price of each device is increased to $100.

Introduction:The breakeven volume will undoubtedly change when the selling price of each unit of product is increased. In this case, since the selling price of each unit of the product is more than before, so the quantity of the product sold or break-even volume in units will be definitely lesser than initial volume.

Answer 11

c.

Summary Introduction

To determine:The potential change in break even volume when price of each device is increased to $100.

Introduction:The breakeven volume will undoubtedly change when the selling price of each unit of product is increased. In this case, since the selling price of each unit of the product is more than before, so the quantity of the product sold or break-even volume in units will be definitely lesser than initial volume.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 1.3 - Prob. 1P Ch. 1.3 - Prob. 2P Ch. 1.3 - Prob. 3P Ch. 1.3 - Prob. 4P Ch. 1.3 - Prob. 5P Ch. 1.3 - Prob. 6P Ch. 1.3 - Prob. 7P Ch. 1.3 - Prob. 8P Ch. 1.3 - Prob. 9P Ch. 1.3 - Prob. 10P

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