[Misusing the percent o sales method) The Caraway Seed Company has grown rapidly ove the last decace and is trying to forecast the firm's inventory requirements tor the next 5 years. Historical sales and inventories for the last 10 years are found in the popup window, Ealong with projected sales for the next 5 years. a. Use the percent af sales methad for forecasting Caraway's inventories for the next 5 years if the percent of sales is equal to the average of the percent of sales for the last 10 years. b. The tollowing graph, ,includes a plot of the historical relationship between inventories and sales along with a line representing the percent of sales forecast. Analyze the forecast line compared to the plot ot inventory and sales to see if you see any problems with the percent of sales forecast. Discuss. a. Using the average of the percent of sales for the last 10 years, what are the projected inventories for 2015? (Round to the nearest dollar.) Data Table Using the average of the percent of sales for the last 10 years, what are the projected inventories for 2016? s (Round to the nearest dollar.) Using the average of the percent of sales for the last 10 years, what are the projected inventories for 2017? (Round to the nearest dollar.) Using the average of the percent of sales for the last 10 years, what are the projected inventories for 2018 INVENTORIES SALES 150,000 6,000,000 6,740,000 5,450,000 6,255,000 6,900,000 7,450,000 8,010,000 8,675,00O 9,990,000 11,500,000 11,700,000 12,500,00o 13,000,000 13,600,000 $1,710,623 1,614,681 1,909,586 1,750,998 1,776,578 2,139,885 1,920,914 1,996,666 2,382,858 2,647,359 (Raund to the nearest dollar.) 2011 Using the average of the percent of sales for the last 10 years, what are the projected inventories for 2019? 2013 (Round to the nearest dollar.) b. The following graph includes a plot of the historical relationship between inventories and sales along with a line representing the 2017 Ciick othe icon Jocated on the top-nght cormer of the data fabie above in order to copy its contents into a spreadsheet.) Print Done 6.5 8.5 105 125 145 Sales i$ in mons Analyzing the forecast line compared to the plot of inventory, did you see any problems with the percent of sales forecast? (Select the best choice below.) A. Yes, the percent of sales line under forecasts inventory levels for low levels of sales and begins to over predict them for higher levels. B. No, the percent of sales line perfecty torecasts inventory levels becuase the relationship between the two variables is very nearly linear