Question

Jim is a minor manufacturer. He needs to know the forecasted sales for September to formulate a plan in advance. What is his forecasted sale using simple average method.

Answer 1

Average Sales For September would be $3838

Explanation:

The missing question

month sales ($)

january 3,000

february 3,500

march 4,000

april 4,500

may 3,000

june 3,500

july 4,204

august 5,000

An Average is taken by adding the total sales of each month dividing by the number of months.

Average Monthly Sales = Sales (JAN) + Sales (FEB) +Sales(MAR) +Sales (APR) Sales (MAY) +Sales (JUN) +Sales (JUL) +Sales (AUG) +Sales(SEPT)+ Sales (OCT) +Sales(NOV) +Sales(DEC)/ 12

Average Sales For September = 3000+ 3,500+ 4000+ 4,500+ 3000+ 3,500+ 4204 + 5000/8

Average Sales For September = 30,704/8= $3838