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Question 23 (1 point) A restaurant sells pizza at a rate of $10.33/slice. Expenses for the restaurant include raw material for pizza at $3.83 per slice, $186.00 as monthly rental and $56.00 monthly as insurance. How many slices should the restaurant sell in a month to break even? Answer rounded to 1 decimal points following standard rules for rounding Your Answer: Answer Question 24 (1 point) If the BIAS value of sales forecast using Naive Method was 10.38. How can you interpret this value? 1) None of these choices is correct 2) Forecast is under Estimating 3) Forecast is Over Estimating 4) Forecast is accurate MacBook Air

Answer 1

Answer 23:

Information provided is as shown under:

Fixed cost ($) = $ 186 + $56 =	$242
Variable cost ($) per slices =	$3.83
Revenue ($) per slices =	$10.33

BEP (slices) = Fixed cost / (revenue per slices – Variable cost per slices) =

37.2

Hence, the break-even point = 37.2 slices per month

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Answer 24:

The correct answer is “2) Forecast is under estimating”.

Bias = Actual demand or Sales - Forecast

In Naïve forecast the previous period actual is current period forecast.

If a positive value is coming as bias, then it means the forecast is less than actual demand or sales. Hence, “Forecast is under estimating”.

Period	Actual Demand	Forecasts	BIAS
t	At	Ft	et = At-Ft
1	9.62		9.62
2	20	9.62	10.38