Example Using Forecasting Method 5: Specific Percent Increase over Prior Month Sales

To calculate sales estimates for July, August and September 2008, enter these percentage values in the appropriate processing option:

  • July: 25 percent

  • August: 30 percent

  • September: -15 percent

    Month

    2007 Reported

    2008 Estimated

    Forecast Calculation

    JUNE

    20,000

    JULY

    22,500

    25,000

    20,000 × 1.25

    AUGUST

    25,000

    29,250

    22,500 × 1.3

    SEPTEMBER

    27,500

    21,250

    25,000 x 0.85

Determine the sales estimates for July, August, and September, 2008 by multiplying each previous month's sales in 2007 with the percentage that you entered in the processing option.

Note: For a lease to comparable, sales must exist for the month prior to the estimated month in the prior year.