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(Misusing the percent of sales method) The Caraway Seed Company has grown rapidly over the last decade and is trying to forecast the firm's inventory
(Misusing the percent of sales method) The Caraway Seed Company has grown rapidly over the last decade and is trying to forecast the firm's inventory requirements for the next 5 years. Historical sales and inventories for the last 10 years are found in the popup window, , along with projected sales for the next 5 years. a. Use the percent of sales method 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 following 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 of inventory and sales to see if you see any problems with the percent of sales forecast. Discuss. Data table a. Using the average of the percent of sales for the last 10 years, what ar (Round to the nearest dollar.) Using the average of the percent of sales for the last 10 years, what are t $ (Round to the nearest dollar.) Using the average of the percent of sales for the last 10 years, what are t (Round to the nearest dollar.) Using the average of the percent of sales for the last 10 years, what are t (Round to the nearest dollar.) Using the average of the percent of sales for the last 10 years, what are t I (Round to the nearest dollar.)
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