Oct 16, 2018 · Reference the average monthly sales of 2014. What is the index for year 1 Aug? MONTHLY SALES ($ ) Month $ Sales Jan 1375 Feb 1319 Mar 1222 Apr 1328 May 1493 Jun 1492 Jul 1489 Aug 1354 Sep 1530 Oct. Q&A. ... Course Hero is not sponsored or endorsed by any college or university. ...
Jul 21, 2018 · Reference the average monthly sales of 2014. What is the index for year 1 Aug? MONTHLY SALES ($ ) Month $ Sales Jan 1375 Feb 1319 Mar 1222 Apr 1328 May 1493 Jun 1492 Jul 1489 Aug 1354 Sep 1530 Oct. Q&A. ... Course Hero is not sponsored or endorsed by any college or university. ...
Dec 17, 2010 · A sales index is designed to help managers track trends in their annual sales revenue totals. The sales index expresses the current year's sales revenue as a percentage of a base year's sales revenue. A sales index of over 100 indicates a year in which sales exceeded the base year's totals, while a number of less than 100 shows that the current year's sales under …
The key factor in creating a sales index is the selection of a base year. The base year acts as the measurement standard for future sales. The selection of the base year depends on the company's objectives when measuring the sales index. Start-ups might choose their first year as their base year.
The next step involves calculating the annual sales totals for each year after the base year. These annual sales totals form the basis for the comparison with the base year. The annual sales totals can be applied either by individual product or service, or reflect the company as a whole.
The sales index is the ratio between the total sales revenue for a specific year and the total sales revenue during the base year. Each year after the base year will have its own sales index. From the XYZ Software example:
Managers can use the annual sales index to determine if the company is reaching its sales goals. In the XYZ Software example, the manager can see that sales were strong in 2012 and 2013, but took a sharp dive in 2014. On a broader scale, economists use sales index numbers to measure different sectors of the economy.