Q. 16.2. Sales Forecasting ( Reference: Table 16.9 Handy Hardware Store, 2017 Sales Forecast by Month) (Do Not copy and Paste the excel sheet, please explain how you calculate the numbers and provide your interpretation)

Q. 16.2. Sales Forecasting ( Reference: Table 16.9 Handy Hardware Store, 2017 Sales Forecast by Month) (Do Not copy and Paste the excel sheet, please explain how you calculate the numbers and provide your interpretation) Month Monthly Actual Sales Monthly Sales Forecast for 2021 Sales Index* January $41,000 February 44,000 March 48,000 April 65,600 May 113,000 June 103,800 July 104,560 August 62,800 September 45,000 October 46,800 November 66,884 December 94,792 Total yearly sales $836,236 Average monthly sales Average monthly index $74,166.67 100.00 Total sales forecast for 2021 $890,000 Average Monthly forecast 1. What is the Average Monthly Sales ( Purple Color)? 2. What is the Sales Index for each month (Orange Color)? 3. Based on the Total Sales Forecast for 2021 is $890,000, What is the Average Monthly Sales forecast for 2021 (Green)? 4. Using the Average Monthly Forecast, what is the average monthly forecast(Blue Color)?Table 16.9 Handy Hardware Store, 2017 Sales Forecast by Month Month Actual Sales 2016 Monthly Sales Index Monthly Sales Forecast for 2017a January $ 46,800 67 $ 73,423 x 0.67 = $ 49,193 February 40,864 58 73,423 x 0.58 = 42,585 March 48,000 69 73,423 x 0.69 = 50,662 April 65,600 94 73,423 x 0.94 = 69,018 May 112,196 160 73,423 x 1.60 = 117,477 June 103,800 148 73,423 x 1.48 = 108,666 July 104,560 149 73,423 x 1.49 = 109,400 August 62,800 90 73,423 x 0.90 = 66,081 September 46,904 67 73,423 x 0.67 = 49,193 October 46,800 67 73,423 x 0.67 = 49,193 November 66,884 96 73,423 x 0.96 = 70,486 December 94,792 135 73,423 x 1.35 = 99,121 Total sales $ 840,000 Total sales forecast $881,080b Average monthly sales $ 70,000 Average monthly forecast $ 73,423 a Monthly sales forecast = average monthly forecast x (Monthly index/100). In this equation, the monthly index is computed as a fraction of 1.00 rather than 100. b There is a small rounding error