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Ammanda Ltd. has forecasted sales of $500,000 for Quarter 3 of year 20X5.
It has increasing trend of $5,000 per quarter. Sales in 2nd quarter of year 20X2 were $400,000. Calculate seasonal variation for quarter 3 assuming that Ammanda Ltd. uses additive model of seasonal variation.
The answer is 35000
(Seasonal variation is difference between actual sale and trend or forecast sale)
There is 13 quarter from (2nd quarter of 20X2 to 3rdquarterof 20X5)
13*5000=65000
65000+400,000=465000
500000-465000=35000Is it right?
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