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Question - Sales Budget for Service Company
Oregon Adventures provides tours of scenic locations in Oregon. The company expects tours taken to increase dramatically compared with the prior year.
For the past year, 2011, the number of tours given were as follows:
First quarter 7,000
Second quarter 8,000
Third quarter 8,000
Fourth quarter 9,000
Assume that sales for each quarter in 2012 will be 33 percent higher than they were in 2011 and the price per tour is $88. Prepare a sales budget by quarter for 2012.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
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