## Saturday, December 7, 2013

### 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 new month ( occludes*\$.2 discount *24 packages/case) D - principal rough profit margin for the incumbent month CL- Consumer Pack expending lagged from 1 month ago (packs*\$.2 discount *24 packages/case) DL-2- head 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 solelyowance 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 take in 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 set up 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 breakout = 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% arrogance Interval is from 412,614 and 554,250 cases. 3) \$1 invested into the Dea ler Allowance would increase current gross ! sales by .076 cases and decrease sales in both months by .02 cases, resulting in a gelt increase of .056 cases. presumptuous 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, govern it on our website: OrderCustomPaper.com

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