The value of a sports franchise is directly related to the amount of revenue that a franchise can generate. Below is the data that represents the value (in $millions) and the annual revenue (in $millions) for 30 Major League Baseball franchises. Suppose you want to develop a simple linear regression model to predict franchise value based on annual revenue generated.

(a ) Use the least-squares method to determine the regression coefficients (intercept and slope).

(b) Interpret the meaning of the intercept and slope in this problem.

(c) Predict the value of a baseball franchise that generates $150 million of annual revenue.

The following information is for Alex Corp:

   Product X: Revenue                                             $12.00

                        Variable Cost $4.50

   Product Y: Revenue                                             $44.50

                        Variable Cost $9.50

   Total fixed costs                                                 $75,000

What is the breakeven point assuming the sales mix consists of two units of Product X and one unit of Product Y?

a. 842.5 units of Y and 1,685 units of X

b. 1 units of Y and 10,000 units of X

c. 1,500 units of Y and 3,000 units of X

d. 3,000 units of Y and 1,500 units of X

I got C, I need this second part below.

What is the operating income, assuming actual sales total 120,000 units, and the sales mix is two units of Product X and one unit of Product Y?

a. 1,925,000

b. 1,200,000

c. 2,000,000

d. 1,960,000

DESCRIBE ACCOUNTING ISSUES FOR REVENUE RECOGNITION AT POINT OF SALE.

Why is it incorrect to record the sale of equipment as miscellaneous revenue?

what is the role of risk measurement in managing revenue risk

The value of a sports franchise is directly related to the amount of revenue that a franchise can generate.  The data below represents the value in 2017 ($ in millions) and the annual revenue ($ in millions) for the 30 Major League Baseball teams.

1. Using Excel or JMP, construct a scatterplot of value versus the revenue for the 30 MLB teams in 2016.  Provide a copy of the resulting scatterplot. (3 points)

2. Based upon your scatterplot, does it appear that the linear model is a reasonable approximation of the data? Comment on the direction and form of the relationship. (2 points)

3.  Using Minitab provide (or attach) the simple linear regression analysis for predicting a team’s value based upon its revenue. (2 points)

4. State the slope for the simple linear regression analysis and interpret this value in this context. (2 points)

5. State the y-intercept for the simple linear regression analysis and interpret, if applicable. (1 point)

6.  State the standard error of the regression analysis and interpret that value.  (2 points)

7. State the coefficient of determination and interpret the value in this context. (2 points)

8. State the sum of square errors. (1 point)

SSE=504849.5953

9. State the standard error of the slope. (1 point)

SEb(1)=sqrt(504849.5953/30-2)/sqrt(186742.7)=134.277/432.137=0.3107

Source: www.forbes.com

10. Calculate and interpret the 95% confidence interval for slope.   (2 points)

8.6507+-2.048(0.3107)=8.6507+-0.6363=(8.0144,

   We are 95% confident that the slope of the interval is between 8.0144 and 9.287.

11.  From the coefficient of determination, standard error of regression, and the confidence interval for slope does that model appear to fit well?  Explain.  (2 points)

What are the consequences associated with the new revenue recognition standard?

State What Kind of Fraud Is One of The Occurrence of Revenue?

how price discrimination can generate more revenue