Kamath-Meier Corporation's CFO uses this equation, which was developed by regressing inventories on sales over the past 5 years, to forecast inventory requirements: Inventories = $22.0 + 0.125(Sales). The company expects sales of $275.0 million during the current year, and it expects sales to grow by 30% next year. What is the inventory forecast for next year? All dollars are in millions. $59.4 $60.0 $54.7 $66.7 $82.0

$66.7

Explanation:

Given that,

Regressing inventories on sales is as follow:

Inventories = $22.0 + 0.125(Sales)

Expected sales during the current year = $275 million

Expected growth rate of sales = 30% next year

The inventory forecast for the next year is calculated by substituting the above value of expected sales into the regression equation of inventories.

Expected sales next year:

= Current year sales(1 + Growth rate)

= $275 (1 + 0.3)

= $357.5

Inventory forecast for next year:

= $22.0 + 0.125(Sales)

= $22.0 + (0.125 × $357.5)

= $22 + $44.6875

= $66.6875 or $66.7

ans.

heterothermic organisms include those organisms that can switch between homeothermic (having body temperature higher than environment) and poikilothermic (having variation in internal body temperature) strategies.

some migratory birds show heterothermy as they decrease their metabolic rate during cold nights to keep their body temperature low. drop in metabolic rate allows increase in production efficiency of birds that reduces the internal body temperature to make it equal to external cold temperature during cold nights.

thus, the correct answer is 'birds allow their temperature drop in order to increase their production efficiency.'