Salesmanship WASSCE (SC), 2021

Question 4

 

OPT Pharmaceutical Ltd.’s Sales forecast for 2022
Using 4 years moving average method

 

  1. i) First quarter sales forecast using first quarter sales data

 from 2018 to 2022.

  1. (ii) Second quarter sales forecast using second quarter sales data
    from 2018 to 2022.

    a (iii) Third quarter sales forecast from third quarter sales
    data (2018 to 2022)

    a (IV) Fourth quarter sales forecast from fourth quarter sales
    data (2018 to 2022)

    (c) Calculate the total sales forecast for 2022.

Observation

 

Moving average = sum of sales data for the period
Number of years        

(a) (i) = N 2,650,000 +N 2,430,600 + N 2,720,500 + N 2,570,000
                                                     4                                               

    = N 10,371,100 = N 2,592,775                                                         
                4                                                                 

     Sales forecast for first quarter = N 2,592,775   

(ii) = N 2,810,200 + N 2,600,500 + N 2,670,600 + N 2,779,000
                                                   4                                                 

= N 10,860,300     =   N 2,715,075 
             4                                                            

                                    Sales forecast for second quarter = N 2,715,075   

(iii)             = N 2,920,000 + N 2,876,000 + N 2,783,000 + N 2,844,000
                                       4                                                            

                         Sales forecast =N 11,423,000 = N 2,855,750
                                                           4

                                   

Sales forecast for third quarter           = N 2,855,750

 

(iv)  = N 2,961,100 + N 2,880,000 + N 2,805,000 + N 2,705,000
                                   4                     
Sales forecast = N 11,351,100 = N 2,837,775
                                     4                    
Sales forecast for fourth quarter = N 2,837,775        

(c) Total sales forecast for 2022
Total sales forecast = sum of quarterly sales forecast                              

 = N 2,592,775 + N 2,715,075 + N 2,855,750 + N 2,837,775                  

            Total forecast for 2022    = N 11,001,375