Pigment |
two pounds per gallon |
two |
pounds per gallon |
|
|
Direct labor rate $ 8.25 per hour
$ 8.25 per hour
2006 PROJECTED SALES INFORMATION
The sales department feels very good about the prospects for 2006 . The reputation of the new product , Stupendous Paint , has increased significantly due to effective adverting in the past few years . The sales department is ready to launch a major advertising campaign which is expected to result in the trend of the last three year to continue for the Stupendous brand even with a small price increase per gallon .
Super Paint has been produced since the company began production . The sales level of this product has been rather stagnant for the last 5 years , and that trend is expected to continue in the future .
You have made the following conclusions about the two different products :
Super Paint
• Sales growth in units will continue to be stagnant .
• The more recent years are more representative of continuing unit sales than years in the further past .
• Exponential Smoothing will be an appropriate unit sales projection method to use .
Stupendous Paint
• Unit sales growth will continue on its current increasing trend