Exercise 2: The San Juan Family Healthcare Services, Inc. company is made up of healthcare professionals from various specialties. From experience, the Operations Manager knows that the demand for patients is not fixed, but seasonal. In other words, year after year more patients are seen during the months of June, July and December. In order to properly plan your budget strategies, an analysis of the historical income of the previous year is made to forecast the next year:

Month	Year
	20x9	20x0
January	$400,000	$380,000
February	$375,000	$325,500
March	$380,000	$392,000
April	$405,000	$374,000
May	$665,000	$628,500
June	$800,000	$770,000
July	$755,000	$700,500
August	$435,000	$400,500
September	$360,000	$300,000
October	$390,000	$340,000
November	$450,000	$420,000
December	$800,000	$765,000

Make a revenue forecast for the year 20x1 using the seasonal multiplicative method. Base the estimate on the projected demand for patients to be 10% less than in 20x0. (52 pts.)

Remember that you must show all the steps of how you got to the result, otherwise you will not receive the full score.

1. Calculate the average demand per year. 4 pts.

2. Calculate the seasonal index by month. 24 pts.

3. Find the average seasonal index. 12 pts.

4. Using the average seasonal index, calculate the forecast for the year 20x1. 12 pts.