Question 4
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OPT Pharmaceutical Ltd.’s Sales forecast for 2022
(i) First quarter sales forecast using first quarter sales data
Using 4 years moving average method
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.