Salesmanship WASSCE (SC), 2023

Question 4

 

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

    (i) First quarter sales forecast using first quarter sales data

 from 2018 to 2022.

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

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

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                                            

(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                                                         

     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                                                                                     

  (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                                     

Comment
Question 4 is based on sales forecast for 2022. Many students did not quite understand the moving average method and avoided the question.