Following is the sale record of a product in year 2020:Spring = 1,083 unitsSummer = 1,224 unitsFall = 948 unitsWinter = 591 unitsRequired: Determine Seasonality Index for Winter?
Question
Following is the sale record of a product in year 2020:Spring = 1,083 unitsSummer = 1,224 unitsFall = 948 unitsWinter = 591 unitsRequired: Determine Seasonality Index for Winter?
Solution
To calculate the Seasonality Index for Winter, we need to follow these steps:
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Calculate the total sales for the year: Add up the sales for all seasons. Total Sales = Spring + Summer + Fall + Winter Total Sales = 1,083 units + 1,224 units + 948 units + 591 units = 3,846 units
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Calculate the average sales for the year: Divide the total sales by the number of seasons. Average Sales = Total Sales / Number of Seasons Average Sales = 3,846 units / 4 = 961.5 units
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Calculate the Seasonality Index for Winter: Divide the sales for Winter by the average sales and multiply by 100 to get a percentage. Seasonality Index for Winter = (Winter Sales / Average Sales) x 100 Seasonality Index for Winter = (591 units / 961.5 units) x 100 = 61.46%
So, the Seasonality Index for Winter is 61.46%. This means that the sales in Winter are 61.46% of the average sales for the year.
Similar Questions
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