Kamath Meier Corporation's CFO uses this equation, which was developed by regressing inventories on sales over the
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Question:
Kamath Meier Corporation's CFO uses this equation, which was developed by regressing inventories on sales over the past 5 years, to forecast inventory requirements: Inventories = $22.0 + 0.125(Sales). The company expects sales of $400 million during the current year, and it expects sales to grow by 30% next year. What is the inventory forecast for next year? All dollars are in millions.
a. $74.6
b. $78.5
c. $82.7
d. $87.0
e. $91.4
Related Book For
Statistics for Business and Economics
ISBN: 978-0134506593
13th edition
Authors: James T. McClave, P. George Benson, Terry Sincich
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