Cash Management CBT 2 Task 2  Sales forecasting and trend
Smiller94
Registered Posts: 12
Hi All,
There is one question out of the two Cash Management (2013) assesments that I cannot for the life of me get to the bottom of.
It is task 2 part c) & d) calculating forecasted sales. All of the scripts I have read have a pattern of variation and can be worked out easily whereas with this question we don't.
If anybody could help I would be SO SO grateful. I can do part a) & b) no problem but c) and d) not so promising.
Thanks so much in advance.
There is one question out of the two Cash Management (2013) assesments that I cannot for the life of me get to the bottom of.
It is task 2 part c) & d) calculating forecasted sales. All of the scripts I have read have a pattern of variation and can be worked out easily whereas with this question we don't.
If anybody could help I would be SO SO grateful. I can do part a) & b) no problem but c) and d) not so promising.
Thanks so much in advance.
0
Comments

(c) So for period 13 = 2065 units
The monthly trend is 35, so all you do is keep adding 35 for the next period, so would be the following:
Period 14  2065 + 35= 2100 (take the 2065 from what is given in the question)
Period 15  2100 +35 = 2135 units
Period 16  2135 + 35 = 2170 units
(d) This covers the mark up/margin section and indexing  I would suggest you learn this as these are easy marks to get in the exam.
From the question, you can tell this is a markup, as the selling price is based on cost PLUS 40%, which is equivalent to 140%.
As the index equation goes, it is current year/base year for indexing 
(1)180/145 = 1.241737931
(2) 1.24 x 435 = £540
As this only represents only 100%, we need to add the 40%, so you simply multiply by 140 =
(3) 540 x 1.4 = £756
Hope this makes sense1 
Aww, Sabina!
Thank you so so so so much for coming back to me, that was very kind of you. Since writing the post I managed to work out part c) but I really appreciate it and your explanation of part d) was so helpful, I understand markup and margin but agree that I need to remind myself how to work out indexing, it all makes perfect sense and I will remeber this for my exam.
Thanks again!
0
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