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