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Sales budget for the year is 1,20,000 units split equally across four quarters. With seasonal index 80%, 110%, 130%, 80% for Q1-Q4, Q3 sales equal:
A30,000 units
B39,000 units
C33,000 units
D36,000 units
Answer & Solution
Correct answer: B. 39,000 units
1. Average quarterly sales = 1,20,000 / 4 = 30,000 units.
2. Q3 sales = average × seasonal index = 30,000 × 1.30.
3. = 39,000 units.
4. The total of all quarterly figures sums to 1,20,000 because the indices average to 1.0.
_Source: ICAI BoS Inter Paper 3, Ch 15 "Budget", §15.7.1 Illus 5_
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