Answer:
Forecasted sales: 25% maximum reduction.
Recommendations: try new ways to increase sales during the months left, or reduce its own cost.
Explanation:
- If sales usually increase between March 1 and June 30, and this period accounts for 50% of annual revenue, if revenue is proportional to sales, a reduction in sales will reduce revenues.
- Between March 1 and June 30 there are 4 months.
- If sales usually pick up in March and this year they were low until the beggining of May, it means that only 2 of the 4 most productive months were higly productive.
- If 50% of sales are concentrated in this 4 months, and this year 2 of the 4 months were not really productive, a maximum 25% of sales (and hence of revenues) may have lost.
- Therefore, revenues may lower by 25% this year.
- To avoid losses, it is advisable to try new ways to increase sales during the months left, that can consist on doing some advertisement and promotions (related to health care linked to exersice for example), that helps increasing sales in the months left, to compensate the looses of the 2 months. If sales cannot be increased, it is advisable to reduce cost to avoid further looses.
Learning.
Or at least I believe so. Are there multiple choice?
The May transactions for Charlie Company (seller) assuming that Charlie uses a perpetual inventory system are:
Charlie Company Journal entries
May 13
Debit Account receivable $360
(8×$45)
Credit Sales $360
(To record credit sales)
May 13
Debit Cost of goods sold $208
(8×$26)
Credit Merchandise inventory $208
(To record cost of goods sold)
May 16
Debit Sales return and allowances $45
Credit Account receivable $45
(To record goods returned)
May 16
Debit Merchandise inventory $26
Credit Cost of goods sold $26
(To record cost of goods sold returned)
May 23
Debit Cash $302
($315-$13)
Debit Sales discount $13
(4%×$315)
Credit Account receivable $315
($360-$45)
Learn more here:
brainly.com/question/16912611
The effect that could be called to the given scenario above is the referral marketing. The referral marketing is a way of being able to promote products to customers, specifically new, with the use of referrals. It could be seen above as after Jack recommended it to Jill, Jill will now refer the product that she loves to another person that could be a potential new customer.
