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 modern month ( ingests*$.2 discount *24 packages/case) D - principal common profit margin for the occurrent month CL- Consumer Pack expending lagged from 1 month ago (packs*$.2 discount *24 packages/case) DL-2- lead 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 bothowance to be gibe to 90% of the current month and 5% from for each one of the ii previous months. Also, we assumed that these allowances would immediately maturation raw revenue and whence decrease future gross gross revenue because consumers and dealers would sto ck up during poll periods. Therefore, we included values for lagged do 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 happy chance = 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% bureau Interval = Estimate +/- Standard Error*T-Value*SQRT(1+(1/n)) The 95% authorization Interval is from 412,614 and 554,250 cases. 3) $1 invested into the De aler Allowance would increase current gross ! revenue by .076 cases and decrease sales in devil months by .02 cases, resulting in a gelt increase of .056 cases. assumptive 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 $2.69 in added sales revenue (assuming all other variables are held constant). 1$ invested into Consumer Packs would increase current sales by .096...If you want to get a full essay, assemble it on our website: OrderCustomPaper.com

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