Exhibit 11.8 The Following Questions Use the Data Below

question 6

Multiple Choice

Exhibit 11.8
The following questions use the data below.
Joe's Sporting Goods wants to forecast quarterly sales figures using Winter's method. The store has collected 12 quarters of data and needs your help to analyze the data.
-Refer to Exhibit 11.8. What formula should be entered in cell E7 to compute the base level value for year 2 Quarter 1?

• A) =$D$17+(1-$D$17)*(E6+F6)
• B) =$D$17*D7/G3+(1-$D$17)*(E6+F6)
• C) =$D$17*D7/G3+(1-$D$17)
• D) =$D$17*D7/G3+($D$17)*(E6+F6)

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Definitions:

Salaries

Payments made to employees for their labor or services over a period.

Social Security Tax

Definition: Taxes collected by governments to fund social security programs, typically levied on both employers and employees.

Medicare Tax

A federal tax taken from earnings to fund the Medicare program, which provides health insurance for individuals aged 65 and older.

Employer Payroll Taxes

Taxes that employers are required to pay on behalf of their employees, including contributions to social security, Medicare, and unemployment taxes.