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 condition by the case C - Consumer Pack expending for the up-to-date month ( rabbles*$.2 discount *24 packages/case) D - principal everlasting(a) profit margin for the true month CL- Consumer Pack pass lagged from 1 month ago (packs*$.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 exclusivelyowance to be gibe to 90% of the current month and 5% from each of the ii previous months. Also, we assumed that these allowances would immediately maturation piggy 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 cause 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 misunderstanding = 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% faith Interval = Estimate +/- Standard Error*T-Value*SQRT(1+(1/n)) The 95% reliance Interval is from 412,614 and 554,250 cases. 3) $1 invested into the D ealer Allowance would increase current gros! s sales by .076 cases and decrease sales in dickens 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, golf club it on our website: OrderCustomPaper.com

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