Question

ruiz company provides the following unit sales forecast for the next three months:january february marchsales units 2,200 3,3004.200the company wants to end each month with ending finished goods inventory equal to 20% of the next month's sales. finished goods inventory on december 31 is 440 units. the budgeted production units for february are:

Answer 1

Sales on day 60 are predicted to be $250.12 thousand and on day 90 they are predicted to be $324.52 thousand, using the regression model îy = 101.32 + 2.48x.

Step-by-step explanation:

The question asks about the prediction of unit sales based on a given linear regression model. Specifically, the model îy = 101.32 + 2.48x is used to predict sales growth, where îy represents sales in thousands of dollars, and x represents the day within the first 90 days of the year.

To predict the sales on day 60, we substitute x with 60 in the regression equation:

îy = 101.32 + 2.48(60)

The calculation gives us îy = 101.32 + 148.8, which equals 250.12 (in thousands of dollars).

Similarly, to predict the sales on day 90, we substitute x with 90 in the equation:

îy = 101.32 + 2.48(90)

The calculation gives us îy = 101.32 + 223.2, which equals 324.52 (in thousands of dollars).

These predictions are essential for the company to estimate future sales and plan their inventory and production accordingly.