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Forecast Sales Volume and One of the major elements of the income statement budget that indicates...

Forecast Sales Volume and One of the major elements of the income statement budget that indicates the quantity of estimated sales and the expected unit selling price.Sales Budget

Guardian Framing Inc. prepared the following sales budget for 2016:

Guardian Framing Inc.
Sales Budget
For the Year Ending December 31, 2016
Product and Area Unit Sales
Volume
Unit Selling
Price
Total Sales
8" × 10" Frame:
East 20,500 $27 $553,500
Central 5,100 27 137,700
West 4,700 27 126,900
Total 30,300 $818,100
12" × 16" Frame:
East 8,600 $28 $240,800
Central 1,800 28 50,400
West 1,100 28 30,800
Total 11,500 $322,000
Total revenue from sales $1,140,100

At the end of December 2016, the following unit sales data were reported for the year:

Unit Sales
8" × 10" 12" × 16"
East 21,320 9,030
Central 5,202 1,764
West 4,512 1,122

For the year ending December 31, 2017, unit sales are expected to follow the patterns established during the year ending December 31, 2016. The unit selling price for the 8" × 10" frame is expected to increase to $28 and the unit selling price for the 12" × 16" frame is expected to increase to $30, effective January 1, 2017.

Required:

1. Compute the increase or decrease of actual unit sales for the year ended December 31, 2016, over An accounting device used to plan and control resources of operational departments and divisions.budget. Use the minus sign to indicate a decrease in amount and percent. Round percents to the nearest whole percent.

Unit Sales,
Year Ended 2016
Increase (Decrease)
Actual Over Budget
Budget Actual Sales Difference 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 2017, compute the unit sales volume to be used for preparing the sales budget for the year ending December 31, 2017. Use the minus sign to indicate a decrease in percent. Round budgeted units to the nearest whole unit.

2016
Actual
Units
Percentage
Increase
(Decrease)
2017
Budgeted
Units (rounded)
8" × 10" Frame:
East %
Central %
West %
12" × 16" Frame:
East %
Central %
West %

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3. Prepare a sales budget for the year ending December 31, 2017.

Guardian Framing Inc.
Sales Budget
For the Year Ending December 31, 2017
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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