The Following Table Shows the Quarterly Sales of Widgets Over

question 59

Multiple Choice

The following table shows the quarterly sales of widgets over the past two years. Calculate the seasonal factor for Quarter 2.
$$\begin{array} {| l | r |} \hline{ \text { Quarter } } & \text { Sules } \\\hline \text { Q1 last year } & 10,000 \\\hline\text { Q2 last year } & 11,000 \\\hline \text { Q3 last year } & 7,500 \\\hline \text { Q4 last year } & 8 , 0 0 0 \\\hline \text { Q1 this year } & 15,000 \\\hline\text { Q2 this year } & 17,000 \\\hline \text { Q3 this year } & 10,500 \\\hline \text { Q4 this year } & 11,500\\\hline\end{array}$$

• A) 0.74
• B) 0.99
• C) 1.14
• D) 1.24
• E) 1.29

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Definitions:

Payment on Account

A transaction that reduces the amount owed on an outstanding accounts payable balance.

Gross Profit

The financial metric that represents the difference between revenue and the cost of goods sold, before deducting overhead, payroll, taxation, and interest payments.

Operating Expenses

Costs that a business incurs through its normal business operations, including rent, salaries, and utility expenses.

Net Income

The end profit for a business after total revenue is reduced by expenses and tax obligations.