Purchase Solution

Temperance, Inc: Computing the Most Accurate Sales Forecast

Not what you're looking for?

Ask Custom Question

Temperance, Inc. is studying marketing cost and sales volume, and has generated the following information by use of a scatter diagram and a least-squares regression analysis:

Scatter Diagram Regression Analysis
Variable cost per unit sold $ 5.80 $ 6.40
Total monthly fixed cost $ 45,500 $ 41,000

Temperance is now preparing an estimate for monthly sales of 19,000 units. On the basis of the data presented, compute the most accurate sales forecast possible.

Purchase this Solution
Solution Summary

The solution computes the most accurate sales forecast possible.

Solution Preview

The most accurate estimates would be provided by the Regression ...

Purchase this Solution
Free BrainMass Quizzes
Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

View More Free Quizzes
Related BrainMass Solutions

  • Selecting the Best Method Using Mean Absolute Deviation

    Do the same for Method B. 6. Compare the MAD for both methods. The one with the smallest MAD is the most accurate forecast.

  • Computing an Exponentially Smoothing Forecast

    150015 Computing an exponentially smoothing forecast The manager of the BP Service Station wants to forecast the demand for unleaded gasoline next month so that the proper number of gallons can be ordered from the distributor.

  • Simple Exponential Smoothing

    The Mean Absolute Percentage Error is computed by first computing the error between the forecast and the actual sales, then using that to compute the error as a percentage of the actual sales.

  • Fluffy's Cat Farms

    112913 Dividend History and Forecast 2 Dividend History and Forecast for FCF (Fluffy's Cat Farms) Provided by: Sal's Dubious Stock Forecasts, Inc.

  • Operations Management Forecasts

    This information should be used to create a null to be most accurate. Making sure there is a positive correlation that is strong will help the company make decisions about sales. Previous sales figures will also help.

  • Marketing Research Department of J.E. Hall Inc

    Use the initial forecast for 1st year of 492? b) Which of the above methods is more accurate using MAD criteria?

  • Computation of AFN

    Please review the solution in the attachment. Thank you for asking BrainMass. The solution helps in computing AFN for Garlington Technologies.

  • Critically discuss these statements, technical terms.

    After preparing the sales forecast, expense for each unit of sales must be estimated. This is done through making estimates on purchases and the corresponding level of inventories. This is important in computing the cost of goods sold.

  • Marketing Research Department of J.E. Hall Inc: The Exponential Smoothing Method

    Use the initial forecast for 1st year of 492? b) Which of the above methods is more accurate using MAD criteria?

View More Related Solutions