Team Sports Inc. sells sporting goods to high schools and colleges via a nationa

Question

Team Sports Inc. sells sporting goods to high schools and colleges via a nationally distributed catalog. Management at Team Sports estimates it will sell 3,200 Wilson Model A2000 catcher’s mitts next year. The deseasonalized sales are projected to be the same for each of the four quarters next year. The seasonal factor for the second quarter is 155. Determine the seasonally adjusted sales for the second quarter of next year.

Team Sports Inc. sells sporting goods to high schools and colleges via a nationally distributed catalog. Management at Team Sports estimates it will sell 3,200 Wilson Model A2000 catcher’s mitts next year. The deseasonalized sales are projected to be the same for each of the four quarters next year. The seasonal factor for the second quarter is 155. Determine the seasonally adjusted sales for the second quarter of next year.

Explanation / Answer

Seasonal index for Second quarter = 155

so Estimated sales for the second quarter = 3200 * 155/400 = 1240

sales for each other quarter is = (3200- 1240)/3 = 653.33

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