SOLUTION: The seasonal indices of sales of a firm are under: Months Index Months Index January 106 July 93 February 105 August 89 March 101 September 92 April

Question 1193799: The seasonal indices of sales of a firm are under:
Months Index Months Index
January 106 July 93
February 105 August 89
March 101 September 92
April 104 October 102
May 98 November 106
June 96 December 108
If the firm is expecting total sales of k4, 200, 000 during 2005, estimate the sales for the individual month of 2005.
Answer by proyaop(69) (Show Source): You can put this solution on YOUR website!
**1. Calculate Average Seasonal Index:**
* Sum of all seasonal indices: 106 + 105 + 101 + 104 + 98 + 96 + 93 + 89 + 92 + 102 + 106 + 108 = 1200
* Average seasonal index: 1200 / 12 = 100
**2. Calculate Average Monthly Sales:**
* Total annual sales: K4,200,000
* Average monthly sales: K4,200,000 / 12 = K350,000
**3. Estimate Sales for Each Month:**
* For each month, multiply the average monthly sales by its corresponding seasonal index and divide by the average seasonal index (100).
* **January:** K350,000 * (106/100) = K371,000
* **February:** K350,000 * (105/100) = K367,500
* **March:** K350,000 * (101/100) = K353,500
* **April:** K350,000 * (104/100) = K364,000
* **May:** K350,000 * (98/100) = K343,000
* **June:** K350,000 * (96/100) = K336,000
* **July:** K350,000 * (93/100) = K325,500
* **August:** K350,000 * (89/100) = K311,500
* **September:** K350,000 * (92/100) = K322,000
* **October:** K350,000 * (102/100) = K357,000
* **November:** K350,000 * (106/100) = K371,000
* **December:** K350,000 * (108/100) = K378,000
**Therefore, the estimated sales for each month of 2005 are as follows:**
* January: K371,000
* February: K367,500
* March: K353,500
* April: K364,000
* May: K343,000
* June: K336,000
* July: K325,500
* August: K311,500
* September: K322,000
* October: K357,000
* November: K371,000
* December: K378,000

RELATED QUESTIONS
(Cash budget) The Sharpe Corporation�s projected sales for the first eight months of 2004 (answered by richwmiller)

sales in January we're 2500 dollars and continue to grow by 5% each month for 6 months... (answered by TimothyLamb)

If an organization collects 70% of sales within a month and the balance two months after... (answered by jojo14344)

The table below provides the average monthly temperature in London, England over the... (answered by ikleyn)

Sales in January were 2,500 continued to grow 5% each month for 6 months what were sales... (answered by JulietG)

My average electricity bill for the months of November, December, January, and February... (answered by elima)

My average electricity bill for the months of November, December, January, and February... (answered by ankor@dixie-net.com)

11-22 Sales of industrial vacuum cleaners at Overholt Supply Co. over the past 13... (answered by Alan3354)

Hi can you please help me solve for this: The monthly sales volume (in thousands of... (answered by stanbon)