Topic 4.3: Sales Forecasting Questions

Which statement best describes sales forecasting?

Table 1 shows the mean number of jars of jam Hedgerow Jams sold per month in each year from 2018 to 2025. | Year | Mean jars of jam sold per month | |---|---| | 2018 | 310 | | 2019 | 340 | | 2020 | 400 | | 2021 | 420 | | 2022 | 480 | | 2023 | 530 | | 2024 | 560 | | 2025 | 600 | The data in Table 1 have been plotted on a graph, with the year along the horizontal axis. On the graph, construct a line of best fit through the data.

Ridgeway Skateboards has grown steadily since 2018. Table 1 shows the mean number of skateboards it sold per month in each year. | Year | Mean skateboards sold per month | |---|---| | 2018 | 210 | | 2019 | 240 | | 2020 | 300 | | 2021 | 310 | | 2022 | 360 | | 2023 | 400 | | 2024 | 430 | | 2025 | 470 | On a graph, plot Ridgeway Skateboards’ mean skateboards sold per month for each year from 2018 to 2025 (show your labelling clearly).

Table 1 shows the mean number of potted plants Greenleaf Plants sold per month in each year from 2018 to 2025. | Year | Mean potted plants sold per month | |---|---| | 2018 | 155 | | 2019 | 170 | | 2020 | 200 | | 2021 | 215 | | 2022 | 250 | | 2023 | 265 | | 2024 | 300 | | 2025 | 315 | The data in Table 1 have been plotted on a graph, with the year along the horizontal axis. On the graph, construct a line of best fit through the data.

Define the term sales forecasting.

SkyHigh Kites has grown steadily since 2018. Table 1 shows the mean number of kites it sold per month in each year. | Year | Mean kites sold per month | |---|---| | 2018 | 40 | | 2019 | 55 | | 2020 | 65 | | 2021 | 85 | | 2022 | 90 | | 2023 | 110 | | 2024 | 125 | | 2025 | 140 | On a graph, plot SkyHigh Kites’ mean kites sold per month for each year from 2018 to 2025 (show your labelling clearly).

Table 1 shows the mean number of pairs of socks Toasty Socks sold per month in each year from 2018 to 2025. | Year | Mean pairs of socks sold per month (00s) | |---|---| | 2018 | 90 | | 2019 | 120 | | 2020 | 140 | | 2021 | 175 | | 2022 | 190 | | 2023 | 225 | | 2024 | 250 | | 2025 | 270 | The data in Table 1 have been plotted on a graph, with the year along the horizontal axis. On the graph, construct a line of best fit through the data.

Leafline Tea has grown steadily since 2018. Table 1 shows the mean number of packs of tea it sold per month in each year. | Year | Mean packs of tea sold per month (00s) | |---|---| | 2018 | 12 | | 2019 | 15 | | 2020 | 17 | | 2021 | 22 | | 2022 | 24 | | 2023 | 27 | | 2024 | 31 | | 2025 | 33 | On a graph, plot Leafline Tea’s mean packs of tea sold per month for each year from 2018 to 2025 (show your labelling clearly).

In a quarter where the trend value is 250 and actual sales are 320, what is the seasonal variation for that quarter?

Why does a sales forecast become less reliable the further ahead it reaches?

Riverbend Furniture has forecast its sales for each of the next five years to decide the size of a new warehouse. Explain why Riverbend’s sales forecast becomes less reliable the further into the future it reaches.

Explain why a business forecasts sales.

Tidewater Cycles sells electric bicycles from one shop by the sea. Its owner wants to know how many e-bikes to order for 2027. Table 1 shows the number of e-bikes it sold each year from 2020 to 2025. | Year | E-bikes sold | |---|---| | 2020 | 400 | | 2021 | 520 | | 2022 | 610 | | 2023 | 740 | | 2024 | 830 | | 2025 | 960 | Explain one way Tidewater Cycles could use the data in Table 1 to forecast its e-bike sales for 2027.

FreshPress, a chain of two juice bars, forecasts that its sales will rise by 20% in 2027 when it opens a third bar, based on its two years of trading. Explain two limitations of sales forecasting for FreshPress.

Explain one method of sales forecasting.

CityLink Coaches runs coach services between two cities. Each spring it forecasts summer passenger numbers to decide how many seasonal drivers to hire. A new high-speed rail line between the two cities opens next year. Explain one benefit and one limitation of sales forecasting for CityLink Coaches.

Sunbrook Gyms has five gyms and wants to borrow $2 million to open a sixth. Each gym manager is told how many members to expect every month. Explain one advantage of sales forecasting for Sunbrook Gyms.

Table 1 shows the mean number of pizza kits Forno Pizza Kits sold per month in each year from 2018 to 2025. | Year | Mean pizza kits sold per month | |---|---| | 2018 | 50 | | 2019 | 70 | | 2020 | 95 | | 2021 | 110 | | 2022 | 130 | | 2023 | 155 | | 2024 | 170 | | 2025 | 195 | Using a line of best fit through the data in Table 1, draw (extrapolate) values for Forno Pizza Kits’ mean pizza kits sold per month in 2026 and 2027.

Wayfarer Walks runs guided walking holidays in Portugal, Spain and Italy and hires its guides each spring for the summer. Last year its bookings for Italy were 30% below what it had expected. Explain one advantage of sales forecasting for Wayfarer Walks.

Clover Vale Dairy makes yoghurt for three supermarket chains. Its only production line runs at 90% of its capacity, and a fourth chain wants to sell its yoghurt from next spring. Explain one advantage of sales forecasting for Clover Vale Dairy.