FB Logistics has been clearing containers from the port of Tema over the past seven years. Management is aware that the business has been facing seasonal fluctuations but there is no scientific basis for the determination of such variations that can be used to predict future revenue.
As a newly engaged Cost Accountant you have been provided with some past quarterly performance over a three-year period. Details of the performance are shown below:
Year 1 Year 2 Year 3
1st Quarter 120 180 150
2nd Quarter 140 160 200
3rd Quarter 160 185 230
4th Quarter 180 210 220
Required:
Using quarterly moving average, calculate the seasonal variation for the company.
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