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Assume a company's budgeted unit sales and its required production in units for April?

User Macaret
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Final answer:

To predict the sales for an electronics retailer, plug the days into the provided regression model. For the WipeOut Ski Company's profit analysis, calculate total revenue and compare it with total costs to determine profit or loss, and assess profitability by comparing average and marginal costs to the price.

Step-by-step explanation:

The question revolves around the concepts of sales prediction and profit calculations in a business context. In the case of the electronics retailer, by using the given sales growth model â = 101.32 + 2.48x, we can predict the sales on day 60 and day 90. To find the predicted sales on day 60, substitute x with 60 in the model to get â = 101.32 + 2.48(60), which equals â = 101.32 + 148.8 or â = 250.12 (in thousands of dollars). Similarly, for day 90, â = 101.32 + 2.48(90), resulting in â = 101.32 + 223.2 or â = 324.52 (in thousands of dollars).

Regarding the WipeOut Ski Company situation, when producing and selling 5 units at a price of $25 each, total revenue is calculated as 5 units * $25/unit = $125. If the total costs are $130, the firm incurs a loss of $5. By comparing the average cost per unit to the price per unit, one can tell if the company is making a loss (average cost > price) or profit (average cost < price). The marginal unit adding to profits depends on whether the cost of producing the marginal unit is less than the revenue it generates.

User Afraz Ahmad
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