SEU Revenue And Business Viability Discussion
- Sara Fox has started her own company, Foxy Shirts, which manufactures imprinted shirts for special occasions. Since she has just begun this operation, she rents the equipment from a local printing shop when necessary. The cost of using the equipment is $250. The materials used in one shirt cost $10, and Sara can sell these for $15 each.
- If Sara sells 20 shirts, what will her total revenue be?
- If Sara sells 30 shirts, what will her total variable cost be?
- How many shirts must Sara sell to break even?
- Average starting salaries for students using a placement service at a university have been steadily increasing. A study of the last four graduating classes indicates the following average salaries: $30,000, $32,000, $34,500, and $36,000 (last graduating class). Using a simple exponential smoothing model with α = 0.25, predict the starting salary for the next graduating class. Assume the initial forecast was $30,000 (the forecast and actual were the same).
- Write a short note on regression analysis in your own words.
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