Business Decision Analysis: Profit Forecasting, Break-even Calculation,and Expected Monetary Value Evaluation1.The XYZ Paint Shop owns and operates a dozen shops in central Missouri. Theirsignature paint is Green Pearl on Electric Blue Candy.Sales (X, in millions of dollars) isrelated to Profits (Y, in hundreds of thousands of dollars) by the regression equation Y =15.886 + 0.75X. What is your forecast of profit for a store with sales of $92 million?$105 million?Answer:2.A product is currently made in a job shop, where fixed costs are $11,000 per year andvariable cost is $60 per unit. The firm sells the product for $100 per unit. What is thebreak-even point for this operation? What is the profit (or loss) on a demand of 250 unitsper year?Preview Mode
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