Quarter Actual Quarterly Sales

Question

1 249.00
2 180.00
3 255.00
4 230.00
Based on the above chart and assuming that without seasonality each quarter will have equal demand:
The Seasonal Index for QT1 is

Answer 1

To calculate the Seasonal Index for each quarter, you first need to find the average sales across all four quarters. Then, you compare each quarter's actual sales to this average to determine the Seasonal Index for QT1 (Quarter 1).

1. Calculate Average Sales: \[ \text{Average Sales} = \frac{\text{Sales in Q1} + \text{Sales in Q2} + \text{Sales in Q3} + \text{Sales in Q4}}{4} \] \[ \text{Average Sales} = \frac{249 + 180 + 255 + 230}{4} = \frac{914}{4} = 228.50 \]

2. Calculate Seasonal Index for QT1: \[ \text{Seasonal Index for Q1} = \frac{\text{Sales in Q1}}{\text{Average Sales}} \] \[ \text{Seasonal Index for Q1} = \frac{249}{228.50} \approx 1.090 \]

So, the Seasonal Index for QT1 is approximately 1.090.