The Gonzales Electric Company’s 12 products are further grouped into four product families. Products A, B, and C compose family 1; D, E, and F compose family 2; G, H, and I compose family 3; and products J, K, and L make up family 4. Gonzales has the following forecasts of monthly demand for each product:
Gonzales’s sales force has also come up with the monthly forecasts of sales for each product family.
Top management has independently decided to set a $1,200,000 overall monthly sales goal for the company. Adjust the sales force forecast to reflect this new goal; then roll down the forecast to the individual item level. Calculate dollar value and number of units in each individual item’s forecast.