DEVRY BUSN278 HOMEWORK 2 AND HOMEWORK 3

HOMEWORK 2

(TCO 3) Using the following information regarding actual sales for Sam’s Ski Supplies, calculate the regression (trend) line:

Sales for Sam’s Ski Supplies ($000s)

Month First Year Second Year

January 380 400

February 340 360

March 320 330

April 280 290

May 265 270

June 230 235

July 220 230

August 200 205

September 210 220

October 250 270

November 400 450

December 450 502

y = 264.92 + 2.79x

y = 264.92 + 1.67x

y = 283.64 + 2.79x

y = 283.64 + 1.67x

Question 2. Question : (TCO 3) Using the following information regarding actual sales for Sam’s Ski Supplies, project sales for March of Year 3 using simple linear regression:

Sales for Sam’s Ski Supplies ($000s)

Month First Year Second Year

January 380 400

February 340 360

March 320 330

April 280 290

May 265 270

June 230 235

July 220 230

August 200 205

September 210 220

October 250 270

November 400 450

December 450 502

308.62

326.94

328.61

330.28

Question 3. Question : (TCO 3) Using the following information regarding actual sales for Paradise Pools, calculate the seasonal ratio for June of Year 3:

Sales for Paradise Pools ($000s)

Month First Year Second Year

January 84 84

February 80 82

March 88 98

April 100 120

May 150 160

June 200 210

July 240 250

August 220 215

September 180 195

October 160 165

November 120 130

December 92 100

0.67

0.77

1.08

1.41

Comments:

Question 4. Question : (TCO 3) Using the following information regarding actual sales for Seafood City, calculate the seasonal forecast of sales for Friday of Week 3:

Sales for Seafood City ($)

Day Week 1 Week 2

Monday 1,700 1,800

Tuesday 1,900 2,000

Wednesday 2,100 2,100

Thursday 2,300 2,200

Friday 4,200 4,300

Saturday 4,400 4,600

Sunday 2,100 2,200

2,822.29

3,006.17

4,300.00

5,614.30

Question 5. Question : (TCO 3) The regression statistic that measures the degree of association between the dependent and independent variable is the:

correlation coefficient.

coefficient of determination.

standard error of the estimate.

HOMEWORK 3

(TCO 4) The greatest portion of the marketing budget is typically used for

salespersons’ salaries and commissions.

advertising.

transportation.

order processing.

Question 2. Question : (TCO 4) A typical R&D division budget is divided into which of the following two sections?

Controllable and noncontrollable

Material and immaterial

Research and development

Fixed and variable

Question 3. Question : (TCO 4) Which of the following statements regarding the general and administrative expense budget is notcorrect?

Historical cost data adjusted for current conditions is an appropriate measure of budgeted costs.

The salary budget should include vacation, holidays, and sick leave.

Common general and administrative expenses include taxes, executive salaries, and travel expenses.

There is little use in identifying costs as discretionary or nondiscretionary.

Question 4. Question : (TCO 4) Capital expenditures that meet the needs of the manager’s division are called

special capital expenditures.

routine capital expenditures.

normal capital expenditures.

standard capital expenditures.

Question 5. Question : (TCO 4) Which of the following is not a capital budgeting decision?

Constructing new studios

Replacing old equipment

Scrapping obsolete inventory

Remodeling an office building