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In the past, Peter Kelle\'s tire dealership in Baton Rouge sold an average of 1

ID: 393457 • Letter: I

Question

In the past, Peter Kelle's tire dealership in Baton Rouge sold an average of 1 comma 1001,100 radials each year. In the past 2 years, 240240 and 260260, respectively were sold in fall, 360360 and 320320 in winter, 150150 and 165165 in spring, and 300300 and 405405 in summer. With a major expansion planned, Kelle projects sales next year to increase to 1 comma 3001,300 radials. Based on next year's projected sales, the demand for each season is going to be (enter your responses as whole numbers):

Explanation / Answer

Average Sale in past year = 1 comma 1001100

Next year's projected sales = 1 comma 3001,300

Thus, Increase in Sales = 3001300/1001100

=3 times

Demand for each season would also be the average of past two years increased by 3 times.

Demand for each season : Average Demand in the past two years * 3

Thus, Demand in fall season = 240240+260260 / 2

= 250250 *3

= 750750

Demand in winter season = 360360 + 320320 / 2

= 340340 * 3

= 1021020

Demand in spring season = 150150 + 165165 / 2

= 157657.5 * 3

= 472973

Demand in summer season = 300300 + 405405 / 2

= 352852.5 *3

= 1058558

Thus, Demand in fall season = 750750

Demand in winter season = 1021020

Demand in spring season = 472973

Demand in summer season = 1058558

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