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The management accountant at Ran Bay Sunglasses has determined the trend equation of sales against time is y = 1,000,000 + 80,000 x where x
The management accountant at Ran Bay Sunglasses has determined the trend equation of sales against time is y = 1,000,000 + 80,000 x where x denotes the quarter (x increases by one for each new quarter) and y is unit sales. The average seasonal variations in demand are shown below: Q1 Q2 Q3 Q4 Average S.V. -15% 10% 15% -10% Required Forecast sales for quarters 17 to 20, assuming the same pattern of seasonal variations to apply.
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