Question

For 20Y8, Raphael Frame Company prepared the sales budget that follows. At the end of December 20Y8, the following unit sales data were reported for the year: Unit Sales 8" × 10" Frame 12" × 16" Frame East 21,216 11,025 Central 4,998 3,332 West 4,320 2,575 Raphael Frame Company Sales Budget For the Year Ending December 31, 20Y8 Product and Area Unit Sales Volume Unit Selling Price Total Sales 8" × 10" Frame: East 20,400 $16 $326,400 Central 4,900 16 78,400 West 4,500 16 72,000 Total 29,800 $476,800 12" × 16" Frame: East 10,500 $17 $178,500 Central 3,400 17 57,800 West 2,500 17 42,500 Total 16,400 $278,800 Total revenue from sales $755,600 For the year ending December 31, 20Y9, unit sales are expected to follow the patterns established during the year ending December 31, 20Y8. The unit selling price for the 8" × 10" frame is expected to increase to $17 and the unit selling price for the 12" × 16" frame is expected to increase to $19, effective January 1, 20Y9. Required: 1. Compute the increase or decrease of actual unit sales for the year ended December 31, 20Y8, over budget. Use the minus sign to indicate a decrease in amount and percent. Round percents to the nearest whole percent. Unit Sales, Year Ended 20Y8 Increase (Decrease) Actual Over Budget Budget Actual Sales Amount Percent 8" × 10" Frame: East % Central % West % 12" × 16" Frame: East % Central % West % 2. Assuming that the increase or decrease in actual sales to budget indicated in part (1) is to continue in 20Y9, compute the unit sales volume to be used for preparing the sales budget for the year ending December 31, 20Y9. Use the minus sign to indicate a decrease in percent. Round budgeted units to the nearest whole unit. 20Y8 Actual Units Percentage Increase (Decrease) 20Y9 Budgeted Units (rounded) 8" × 10" Frame: East % Central % West % 12" × 16" Frame: East % Central % West % 3. Prepare a sales budget for the year ending December 31, 20Y9. Raphael Frame Company Sales Budget For the Year Ending December 31, 20Y9 Product and Area Unit Sales Volume Unit Selling Price Total Sales 8" × 10" Frame: East $ $ Central West Total $ 12" × 16" Frame: East $ $ Central West Total $ Total revenue from sales &

Answer 1

Solution 1
	Unit Sales, Year Ended 20Y6	Increase (Decrease) Actual Over Budget
	Budget	Actual Sales	Amount	Percent
8" × 10" Frame:
East	20400	21216	816	4%
Central	4900	4998	98	2%
West	4500	4320	-180	-4%
12" × 16" Frame:
East	10500	11025	525	5%
Central	3400	3332	-68	-2%
West	2500	2575	75	3%

Solution 2
	20Y6 Actual Sales	Percentage Increase (Decrease)	20Y7 Budgeted Units (rounded)
8" × 10" Frame:
East	21216	4%	22065
Central	4998	2%	5098
West	4320	-4%	4147
12" × 16" Frame:
East	11025	5%	11576
Central	3332	-2%	3265
West	2575	3%	2652

Solution 3
Raphael Frame Company
Sales Budget
For the Year Ending December 31, 20Y7
Product and Area	Unit Sales Volume	Unit Selling Price	Total Sales
8" × 10" Frame:
East	22065	16	353040
Central	5098	16	81568
West	4147	16	66352
Total	31310		500960
12" × 16" Frame:
East	11576	17	196792
Central	3265	17	55505
West	2652	17	45084
Total	17493		297381
Total revenue from sales			798341