Quarter Actual Quarterly Sales

Question

1 114.00
2 160.00
3 238.00
4 250.00
Based on the above chart and assuming that without seasonality each quarter will have equal demand:
The Seasonal Index for QT3 is

Answer 1

To calculate the Seasonal Index for Quarter 3 (QT3) based on the provided sales data and the assumption that each quarter has equal demand without seasonality, you can follow these steps:

1. Calculate the total annual sales: \[ \text{Total Annual Sales} = 114.00 + 160.00 + 238.00 + 250.00 = 762.00 \]

2. Find the average quarterly sales (without seasonality): \[ \text{Average Quarterly Sales} = \frac{\text{Total Annual Sales}}{4} = \frac{762.00}{4} = 190.50 \]

3. Determine the actual sales for QT3: \[ \text{Actual Sales for QT3} = 238.00 \]

4. Calculate the Seasonal Index for QT3: \[ \text{Seasonal Index for QT3} = \frac{\text{Actual Sales for QT3}}{\text{Average Quarterly Sales}} = \frac{238.00}{190.50} \approx 1.25 \]

The Seasonal Index for Quarter 3 (QT3) is approximately 1.25. This indicates that sales in QT3 are about 25% higher than the average quarterly sales without seasonality.