If the February demand for a product is 5,000 units and the seasonal index for February is 0.75, what is the deseasonalized February demand?
A) 3,750
B) 6,667
C) 8,750
D) 10,000
E) 15,000

Question

Quizplus · Accepted Answer

Deseasonalized February demand = February demand / Seasonal index
Deseasonalized February demand = 5,000 / 0.75 = 6,667
Therefore, the answer is A) 3,750 (which is incorrect). The correct answer is the calculation done, which is 6,667.

If the February Demand for a Product Is 5,000 Units