Question

Apply the Seasonal Forecast Using Simple Proportion method to calculate a forecast for product X for the first quarter of the next year. The expected total sales for product X is 14800 for the next year.

Quarter Average seasonal factor
1 0.70
2 0.46
3 1.73
4 1.11

a. More than 0 but less than or equal to 1500
b. More than 1500 but less than or equal to 2000
c. More than 2000 but less than or equal to 2500
d. More than 2500 but less than or equal to 3000
e. More than 3000

Answer 1

d.

Step-by-step explanation:

From the given information;

the quarter average sale = expected total sales ÷ number of quarter

= 14800 ÷ 4

= 3700

The forecast for the first quarter = average quarter sale × seasonal factor

= 3700 × 0.70

= 2590

Thus, the expected sales is more than 2500 but lesser than 3000