Lugos Ostentatious Bakery, a new entrant into the specialty desert food market, has been in business for 1 year. During that time, Lugos business has grown (see table below). Although extremely happy with the results, the company has suffered growing pains in particular the inability for forecast future demand

Lugos owner, Mokie, is not well trained with respect to forecasting future demand and is looking for help to plan the next 12 months. As a result, Mokie has hired to you assist Lugo in developing a model that will help them forecast future demand. Mokie estimates that phone calls will increase 3% and internet hits will increase 8% each month over last year

Months

Phone Calls Internet Hits Sales (Units) January 32,304 80,760 5,384 February 40,405 105,053 8,081 March 41,128 113,102 10,282 April 27,468 109,872 9,156 May 36,708 91,770 6,118 June 45,695 109,668 9,139 July 37,380 124,600 12,460 August 32,151 117,887 10,717 September 31,300 101,725 7,825 October 29,079 116,316 9,693 November 15,177 136,593 15,177 December 21,980 120,890 10,990 Required: 1. Create a model to forecast sales. 2. Assess the accuracy of your model. 3. Forecast sales for the next 12 months for Lugos Ostentatious Bakery.