Question

1. Forecast Sales Volume and Sales Budget

   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	22,557		14,560
   Central	5,757		4,900
   West	5,141		3,978

   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		21,900		$14		$306,600
   Central		5,700		14		79,800
   West		5,300		14		74,200
   Total		32,900				$460,600
   12" × 16" Frame:
   East		14,000		$24		$336,000
   Central		5,000		24		120,000
   West		3,900		24		93,600
   Total		22,900				$549,600
   Total revenue from sales						$1,010,200

   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 $15 and the unit selling price for the 12" × 16" frame is expected to increase to $26, 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			$

Check My Work5 more Check My Work uses remaining.

Answer 1

Part-1.
		Unit Sales,				Increase (Decrease)
		Year Ended 20Y8				Actual Over Budget
		Budget Unit (a)		Actual Sale Units (b)		Difference (c=b-a)	Percent (c/a)
8" × 10" Frame:
	East	22557		21900		-657	-2.91%
	Central	5757		5700		-57	-0.99%
	West	5141		5300		159	3.09%
12" × 16" Frame:
	East	14560		14000		-560	-3.85%
	Central	4900		5000		100	2.04%
	West	3978		3900		-78	-1.96%

Part-2
		20Y8		Percentage	20Y9
		Actual		Increase	Budgeted
		Units (a)		(Decrease) (b)	Units (a+(aXb))
8" × 10" Frame:
	East	21900		-2.91%	21,262
	Central	5700		-0.99%	5,644
	West	5300		3.09%	5,464
12" × 16" Frame:
	East	14000		-3.85%	13,462
	Central	5000		2.04%	5,102
	West	3900		-1.96%	3,824

Part-3
For the Year Ending December 31, 20Y9
Product and Area	Unit Sales Volume	Unit Selling Price	Total Sales
8" × 10" Frame:
East	21,262	$14.00	$297,669.90
Central	5,644	$14.00	$79,009.90
West	5,464	$14.00	$76,494.85
Total			$453,174.65
12" × 16" Frame:
East	13,462	$24.00	$323,076.92
Central	5,102	$24.00	$122,448.98
West	3,824	$24.00	$91,764.71
Total			$537,290.61
Total revenue from sales			$990,465.26