answer question 2 please. please be as descriptive and informative as possible. thanks!

Gnomial Functions, Inc. CASE 14.2 Gnomial Functions, Inc. (GFI), is a medium-sized consulting a reliable estimate of its sales during the next 18 months. firm in San Francisco that specializes in developing various The company management expects that sales should increase forecasts of product demand, sales, consumption, or other substantially because of competing energy costs, tax-credit information for its clients. To a lesser degree, it also has devel- availability, and fundamental shifts in the attitudes of the oped ongoing models for internal use by its clients. When regional population toward so-called exotic solar systems. contacted by a potential client, GFI usually establishes a basic The company also faces increasing competition within this work agreement with the firm's top management that sets out burgeoning market. This situation requires major strategic the general goals of the end product, primary contact person decisions concerning the company's future. When GFI was nel in both firms, and an outline of the project's overall scope contacted, DynaSol almost had reached the manufacturing (including any necessary time constraints for intermediate and capacity of its present facility, and if it wishes to continue grow- final completion and a rough price estimate for the contract). ing with the market, it must expand either by relocating to a Following this step, a team of GFI personnel is assembled to new facility entirely or by developing a second manufacturing determine the most appropriate forecasting technique and location. Each involves certain known costs, and each has its develop a more detailed work program to be used as the basis advantages and disadvantages. The major unknown factors for final contract negotiations. This team, which can vary in size as far as management is concerned are growth of the overall according to the scope of the project and the client's needs, market for this type of product and how large a market share will perform the tasks that are established by the work program the company would be able to capture. in conjunction with any personnel from the client firm who Table 14.12 contains the preliminary information available would be included in the team. to GFI on DynaSol's past sales. Recently, GFI was contacted by a rapidly growing regional firm that manufactures, sells, and installs active solar water- heating equipment for commercial and residential applications. DynaSol Industries has seen its sales increase by more than 200 percent during the past 18 months, and it wishes to obtain TITORIO Ome Ben- He ing, anu su TSU management has decided to use your expertise to develop a forecast for the next six months (and, perhaps, for the six- month period following that one as well), because it must have some information on which to base a decision about expanding its operations. Develop such a forecast, and for the benefit of top management, note any reservations or qualifications you feel are vital to its understanding and use of the information MILCARRASCORSAIRAALARIBU 2. Assume that you are a member of DynaSol's small mar- keting department and that the contract negotiations with GFI have fallen through Irrevocably. The company's top TABLE 14.12 DynaSol Monthly Sales for Period September 2018-February 2020 Month DynaSol Industries Sales, Units Regional Market Sales, Units Sales September October November December 24 28 31 32 Sales 2018 $ 44,736 52,192 59,517 61,437 223 228 230 231 $ 396,048 404,928 408,480 422,564 2019 January February March April May June July August September October November December 30 35 39 40 43 47 51 54 59 62 67 69 57.998 67,197 78,621 80,637 86,684 94,748 110,009 116,480 127.265 137.748 148,857 153,300 229 235 240 265 281 298 314 354 389 421 466 501 418,905 429,881 439,027 484.759 529,449 561,479 680,332 747,596 809,095 931,401 1,001,356 1,057,320 January February 74 79 2020 161,121 172,007 529 573 1,057,320 1.145,264