The Boxer Company has been in business since 1998.The following sales data are recorded by quarter for the years 2010-2012. The managers at the company wish to determine the seasonal indexes for each quarter during the year.The index for the summer quarter is:
A)approximately 1.39
B)less than 1.1
C)about 087
D)approximately 159

Question

The Boxer Company has been in business since 1998.The following sales data are recorded by quarter for the years 2010-2012.  The managers at the company wish to determine the seasonal indexes for each quarter during the year.The index for the summer quarter is:
A)approximately 1.39 
B)less than 1.1 
C)about 087 
D)approximately 159

Quizplus · Accepted Answer

To calculate the seasonal index for each quarter, we need to find the average sales for that quarter over the three-year period, and then divide that by the overall average sales for all quarters. The average sales for the summer quarter (Q3) over the years 2010-2012 is (1100+1250+1400)/3 = 1250. The overall average sales for all quarters is (900+1200+1250+1100+1400+1500)/6 = 1233.33. So, the seasonal index for Q3 is 1250/1233.33 ≈ 1.39. Therefore, the best choice is A, approximately 1.39.

The Boxer Company Has Been in Business Since 1998