Reference no: EM13921137
For years The Glass Slipper restaurant has operated in a resort?community near a popular ski area of New Mexico. The restaurant?is busiest during the first 3 months of the year, when the?ski slopes are crowded and tourists flock to the area.?
When James and Deena Weltee built The Glass Slipper,?they had a vision of the ultimate dining experience. As the view?of surrounding mountains was breathtaking, a high priority was?placed on having large windows and providing a spectacular?view from anywhere inside the restaurant.
Special attention was?also given to the lighting, colors, and overall ambiance, resulting?in a truly magnificent experience for all who came to enjoy?gourmet dining. Since its opening, The Glass Slipper has developed?and maintained a reputation as one of the "must visit"?places in that region of New Mexico.?While James loves to ski and truly appreciates the mountains?and all that they have to offer, he also shares Deena's?dream of retiring to a tropical paradise and enjoying a more?relaxed lifestyle on the beach. After some careful analysis of?their financial condition, they knew that retirement was many?years away.
Nevertheless, they were hatching a plan to bring?them closer to their dream. They decided to sell The Glass?Slipper and open a bed and breakfast on a beautiful beach in?Mexico. While this would mean that work was still in their?future, they could wake up in the morning to the sight of the?palm trees blowing in the wind and the waves lapping at the?shore. They also knew that hiring the right manager would allow?James and Deena the time to begin a semi-retirement in a?corner of paradise.?To make this happen, James and Deena would have to sell?The Glass Slipper for the right price.
The price of the business?would be based on the value of the property and equipment, as?well as projections of future income. A forecast of sales for the?next year is needed to help in the determination of the value of?the restaurant. Monthly sales for each of the past 3 years are?provided in Table below.
Questions:
1. Prepare a graph of the data. On this same graph, plot a?12-month moving average forecast. Discuss any apparent?trend and seasonal patterns.
2. Use regression to develop a trend line that could be used?to forecast monthly sales for the next year. Is the slope of?this line consistent with what you observed in question 1? ?If not, discuss a possible explanation.
3. Use the multiplicative decomposition model on these?data. Use this model to forecast sales for each month of?the next year. Discuss why the slope of the trend equation?with this model is so different from that of the trend equation in question 2.
Month 2008 2009 2010
January 438 444 450?
February 420 425 438?
March 414 423 434?
April 318 331 338?
May 306 318 331?
June 240 245 254?
July 240 255 264?
August 216 223 231?
September 198 210 224?
October 225 233 243?
November 270 278 289?
December 315 322 335
|
Capital half with debt and half with equity at existing rate
: Gresham Corporation has 40% debt and 60% equity (market values) in its capital structure. The pretax cost of debt is 8.5%, and that of equity 15.5%. The total value of the company is $320 million and its income tax rate is 40%. The company has decide..
|
|
Before-tax required rate of return
: Assume that the before-tax required rate of return for Deer Valley is 14%. Compute the before-tax NPV of the new lift and advise the managers of Deer Valley about whether adding the lift will be a profitable investment. Show calculations to suppor..
|
|
Concepts to current job and career in the future
: Reflecting on the past ten (10) weeks, specify what you believe are the two (2) most important concepts you have learned in this course. Predict two (2) ways you will be able to apply these concepts to your current job and career in the future.
|
|
Problem regarding the notion of intelligence
: Intelligence testing at its inception measured one notion of intelligence. The work of Gardner, Spearman, and others has challenged that notion. In this assignment, write a paper that addresses the idea of what intelligence testing should actually..
|
|
Use regression to develop a trend line
: Use regression to develop a trend line that could be used?to forecast monthly sales for the next year. Is the slope of?this line consistent with what you observed in question 1? ?If not, discuss a possible explanation.
|
|
What general repetition scheme would you suggest
: What general repetition scheme would you suggest in a training program for the following trainees: power lifter, soccer player, office worker, carpenter, football player, obese client, runner, swimmer? Why do you feel that these recommendations wo..
|
|
Capital structure-shares of common stock
: Springfield Company has the following capital structure. It has 9 million shares of common stock selling for $80 each. The stock will pay a dividend of $2.75 next year and this dividend is expected to grow at the rate of 10% annually.
|
|
Standard memory test
: A researcher posed a null hypothesis that there was no significant difference between boys and girls on a standard memory test. She randomly sampled 100 girls and 100 boys in a community and gave them the standard memory test. The mean score for g..
|
|
What might be contributing to the change in productivity
: And discuss what might be contributing to the change in productivity. In other words, what are the sources of the productivity change?
|