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Forecast Sales Volume and Sales Budget For 20Y6, Raphael Frame Company prepared the sales budget that...

Forecast Sales Volume and Sales Budget

For 20Y6, Raphael Frame Company prepared the sales budget that follows.

At the end of December 20Y6, the following unit sales data were reported for the year:

Unit Sales
8" × 10"
Frame
12" × 16"
Frame
East 27,501 13,000
Central 6,969 4,018
West 6,208 3,193
Raphael Frame Company
Sales Budget
For the Year Ending December 31, 20Y6
Product and Area Unit Sales
Volume
Unit Selling
Price
Total Sales
8" × 10" Frame:
East 26,700 $34 $907,800
Central 6,900 34 234,600
West 6,400 34 217,600
Total 40,000 $1,360,000
12" × 16" Frame:
East 12,500 $49 $612,500
Central 4,100 49 200,900
West 3,100 49 151,900
Total 19,700 $965,300
Total revenue from sales $2,325,300

For the year ending December 31, 20Y7, unit sales are expected to follow the patterns established during the year ending December 31, 20Y6. The unit selling price for the 8" × 10" frame is expected to increase to $35 and the unit selling price for the 12" × 16" frame is expected to increase to $51, effective January 1, 20Y7.

Required:

1. Compute the increase or decrease of actual unit sales for the year ended December 31, 20Y6, 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 20Y6
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 20Y7, compute the unit sales volume to be used for preparing the sales budget for the year ending December 31, 20Y7. Use the minus sign to indicate a decrease in percent. Round budgeted units to the nearest whole unit.

20Y6
Actual
Units
Percentage
Increase
(Decrease)
20Y7
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, 20Y7.

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 $ $
Central
West
Total $
12" × 16" Frame:
East $ $
Central
West
Total $
Total revenue from sales $

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