An auto parts supplier forecasted 1998 annual sales of $800,000.Seasonal indexes of sales for each quarter of the year were: I - 80,II - 112,III - 117,IV - 91.The sales forecast for quarter II was:
A) 300,000.
B) 200,000.
C) 224,000.
D) 228,000.
E) 284,000.

Question

Quizplus · Accepted Answer

To find the sales forecast for quarter II, we need to multiply the total annual sales forecast by the seasonal index for quarter II:
Sales forecast for quarter II = $800,000 x 112/100 = $896,000
Therefore, the answer is (C) 224,000.

An Auto Parts Supplier Forecasted 1998 Annual Sales of $800,000