Meijer had $300 million in sales last year. The company expects that its sales will increase 12 percent during the upcoming year. Meijers CFO uses simple linear regression to forecast the companys average inventory level for a given level of projected sales. Below is the regression output for the previous five years of sales with inventory. Numbers are in millions of dollars. Using the regression output:

a. What is the equation for forecasting inventory based on sales?

b. What is next years forecasted inventory?

c. Are sales a good predicter of inventory?

d. Currently the warehouse can accommodate $70 million in inventory. At what sales level will the warehouse reach maximum capacity?