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 disposed by the case C - Consumer Pack expending for the new month ( pack togethers*$.2 discount *24 packages/case) D - principal uncouth profit margin for the on-going month CL- Consumer Pack expense lagged from 1 month ago (packs*$.2 discount *24 packages/case) DL-2- trader 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 tout ensembleowance to be gibe to 90% of the current month and 5% from to each one of the ii previous months. Also, we assumed that these allowances would immediately maturation thoroughgoing(a) revenue and whence decrease future gross gross revenue because consumers and dealers would stock up during poll periods. Therefore, we included values for lagged make 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 slip = 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% assurance Interval = Estimate +/- Standard Error*T-Value*SQRT(1+(1/n)) The 95% cartel Interval is from 412,614 and 554,250 cases. 3) $1 invested into the Dealer Allowance would increase cu! rrent gross revenue by .076 cases and decrease sales in two months by .02 cases, resulting in a gelt increase of .056 cases. take for granted 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, point it on our website: OrderCustomPaper.com

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