Week 2 Problem - Sales Forecasting

# Week 2 Problem - Sales Forecasting - AC556 Week 2 Problem...

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AC556 Week 2 Problem Sales Forecasting NOTE: It is expected that this problem will be completed using an Excel spreadsheet using formulas. Please see the Excel Tutorial that is available under the course home tab. The Schonlind Company has gathered information regarding past sales: Year Sales 1999 \$300,000 2000 225,000 2001 325,000 2002 650,000 2003 540,000 2004 675,000 2005 825,000 Required: 1. Predict the sales for 2006 using the moving average method. 2. You noticed a sudden jump in sales in 2002. After inquiring about this jump, you were told that there was a one-time sale for \$200,000 in that year that is not likely to be repeated. What revision, if any, would you make in the sales information used for projection? 3. If you revised you historical sales to be used to project 2006 sales, recalculate your projection using the moving average method. 4. Which projection (question 1 or question 3) do you feel is more representative of the

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## This note was uploaded on 05/14/2011 for the course ACCT 557 taught by Professor Stretton during the Spring '11 term at Keller Graduate School of Management.

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Week 2 Problem - Sales Forecasting - AC556 Week 2 Problem...

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