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.