Question

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

Answer 1

Answer:

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