The ADJO Prison Services Company is a for-profit entity that generates additional cash flows for a corrections facility. These cash flows are used to support the operating costs of the prison environment. ADJO makes customized cups that are sold both to the general pub- lic and within the justice system. The cost of these cups is $8.00 per cup. The fixed costs of operations are $1100 per month, and the vari- able costs are $5.56 per cup. Given these data, what are the break- even values for both product units and financial value?
Table 1 Crime Quantities by Category
|
Year
|
Population
|
Violent Crime
|
Robbery
|
Burglary
|
|
1992
|
255,029,699
|
1,932,274
|
672,478
|
2,979,884
|
|
1993
|
257,782,608
|
1,926,017
|
659,870
|
2,834,808
|
|
1994
|
260,327,021
|
1,857,670
|
618,949
|
2,712,774
|
|
1995
|
262,803,276
|
1,798,792
|
580,509
|
2,593,784
|
|
1996
|
265,228,572
|
1,688,540
|
535,594
|
2,506,400
|
|
1997
|
267,783,607
|
1,636,096
|
498,534
|
2,460,526
|
|
1998
|
270,248,003
|
1,533,887
|
447,186
|
2,332,735
|
|
1999
|
272,690,813
|
1,426,044
|
409,371
|
2,100,739
|
|
2000
|
281,421,906
|
1,425,486
|
408,016
|
2,050,992
|
|
2001
|
285,317,559
|
1,439,480
|
423,557
|
2,116,531
|
|
2002
|
287,973,924
|
1,423,677
|
420,806
|
2,151,252
|
|
2003
|
290,788,976
|
1,383,676
|
414,235
|
2,154,834
|
|
2004
|
293,656,842
|
1,360,088
|
401,470
|
2,144,446
|
|
2005
|
296,507,061
|
1,390,745
|
417,438
|
2,155,448
|
|
2006
|
299,398,484
|
1,435,123
|
449,246
|
2,194,993
|
|
2007
|
301,621,157
|
1,422,970
|
447,324
|
2,190,198
|
|
2008
|
304,059,724
|
1,394,461
|
443,563
|
2,228,887
|
|
2009
|
307,006,550
|
1,325,896
|
408,742
|
2,203,313
|
|
2010
|
309,330,219
|
1,251,248
|
369,089
|
2,168,459
|
|
2011
|
311,591,917
|
1,203,564
|
354,396
|
2,188,005
|
THOUGHT AND DISCUSSION QUESTIONS
Table 1 is an excerpt of data contained within the 2011 Uniform Crime Reports database of the Federal Bureau of Investigation. Use this table to solve the problems given below.
1. Refer to Table 1 Using the MAM paradigm, predict the forecasted values of population, violent crime, robbery, and burglary that may occur during 2012.
2. Refer to Table 1 Using the exponential smoothing method, predict the forecasted values of population, violent crime, robbery, and burglary that may occur during 2012.
3. Refer to Table 1 Using the LSM paradigm, predict the forecasted values of population, violent crime, robbery, and burglary that may occur during 2012.
4. Based on the outcomes of the preceding questions, what differences are observable regarding the forecasts? If you believe differences are exhibited within the outcomes, why do you believe these differences occur?