Following is the sale record of a product in year 2020:Spring = 1,040 unitsSummer = 1,427 unitsFall = 902 unitsWinter = 707 unitsRequired: Determine Seasonality Index for Winter?Important Instruction: Write your answer up to three decimal places.
Question
Following is the sale record of a product in year 2020:Spring = 1,040 unitsSummer = 1,427 unitsFall = 902 unitsWinter = 707 unitsRequired: Determine Seasonality Index for Winter?Important Instruction: Write your answer up to three decimal places.
Solution
To calculate the Seasonality Index for Winter, we first need to find the total sales for the year and then determine what percentage of that total was sold in Winter.
Step 1: Calculate total sales for the year Spring = 1,040 units Summer = 1,427 units Fall = 902 units Winter = 707 units Total sales = 1,040 + 1,427 + 902 + 707 = 4,076 units
Step 2: Calculate the Seasonality Index for Winter Winter sales = 707 units Total sales = 4,076 units Seasonality Index for Winter = (Winter sales / Total sales) * 100
Seasonality Index for Winter = (707 / 4,076) * 100 = 17.335
So, the Seasonality Index for Winter is 17.335 (up to three decimal places).
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