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14 May, 14:11

Fir the third quarter, the sales are 1,000 units, the seasonal index fir the quarter is 0.85. what is the deseasonalized sales for the quarter

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  1. 14 May, 14:59
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    1,176 units

    Explanation:

    The demand which is created due to a season or specific time in each year is called seasonal demand.

    Seasonal Demand = 1,000 units

    Seasonal Index = 0.85

    Using following formula we can calculate the deseasonalized sales

    Seasonal demand = Deseasonalized Sales x Seasonal Index

    Placing value in the formula

    1,000 units = Deseasonalized Sales x 0.85

    Deseasonalized Sales = 1,000 / 0.85 = 1176.47

    Deseasonalized Sales = 1,176 units
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