Scale Co. offers a promotional coupon with every product it sells. The coupon gives the Scale Co. customer an opportunity to buy an electric drill that normally sells for $50 for only $30 (a 40% discount). The coupon must be redeemed within one year of the purchase. Scale Co. estimates that 80% of customers will take advantage of the coupon. What is the stand-alone selling price of the coupon

Question is incomplete, Here are the Options:

a. $20

b. $30

c. $50

d. $16 is Correct

Explanation:

Since Scale Co. estimates just 80 percent of the coupons to be used.

They calculates a coupon's stand-alone selling price at $20 (40 percent of 50) = 80 percent = $16 ($20, the discount number, is the commodity right in which a fraction of the selling price must be allocated).

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a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.