Harmon Foods

Harmon Foods subject area 1) Case Shipments = -80,315.68 + 946.56T + 3877.95S + .096C + .076D - .048CL - .02DL-2 Where T - Time in months since Dec 1983 S - Seasonal Index as assumption by the case C - Consumer Pack expending for the new month ( studys*$.2 discount *24 packages/case) D - principal complete(a) profit margin for the reliable month CL- Consumer Pack spending lagged from 1 month ago (packs*$.2 discount *24 packages/case) DL-2- dealer Allowance lagged from 2 months ago We assume that one consumer pack includes 24 coupons (a case) at a value of $.20/ea. Based on data in the case, we weighted the consumer packs and dealer altogetherowance to be gibe to 90% of the current month and 5% from distributively of the ii previous months. Also, we assumed that these allowances would immediately maturation blunt revenue and whence decrease future gross gross revenue because consumers and dealers would stock up during poll periods. Therefore, we included values for lagged effectuate of previous consumer packs and dealer allowances. 2) Case Shipments = -80,315.68 + 996.56*49 + 3877.95*113 + .096*960,000 + .076*154,455 - .048*345,028.8 - .02*368,337.5 = 483,432 Standard gaolbreak = 34,733.12 given by Excel pledge Interval of 95% -> T Value of 97.5% for 42 degrees of liberty is 2.018 2.018 * 34,733.12 * SQRT (1 + (1/48)) = 70,818 95% authorization Interval = Estimate +/- Standard Error*T-Value*SQRT(1+(1/n)) The 95% bureau Interval is from 412,614 and 554,250 cases. 3) $1 invested into the Dealer Allowance would increase current gross sales by .076 cases and decrease sales in devil months by .02 cases, resulting in a gelt increase of .056 cases. presumptuous that Harmon Foods is able to sell their cereal for $2/pack, the value of a case is $48 ($2 * 24 packs/case). Therefore, $1 invested in Dealer Allowance equates to $2.69 in added sal es revenue (assuming all other variables are! held constant). 1$ invested into Consumer Packs would increase current sales by .096...If you want to get a full essay, orderliness it on our website: OrderCustomPaper.com

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