Question

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 18,800 $23 $432,400 Central 4,900 23 112,700 West 4,500 23 103,500 Total 28,200 $648,600 12" × 16" Frame: East 12,500 $24 $300,000 Central 2,900 24 69,600 West 1,900 24 45,600 Total 17,300 $415,200 Total revenue from sales $1,063,800 At the end of December 2016, the following unit sales data were reported for the year: Unit Sales 8" × 10" 12" × 16" East 19,364 13,000 Central 4,949 2,842 West 4,320 1,938 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 $24 and the unit selling price for the 12" × 16" frame is expected to increase to $26, effective January 1, 2017. Required: 1. Compute the increase or decrease of actual unit sales for the year ended December 31, 2016, over budget. Use the minus sign to indicate a decrease in amount and percent. Round percents to the nearest whole percent.

Answer 1

	Unit Sales		Increase (Decrease)
	Budget	Actual	Unit	Percent
8" X 10" Frame:
East	18,800	19,364	564	3%
Central	4,900	4,949	49	1%
West	4,500	4,320	(180)	-4%
12" X 16" Frame:
East	12,500	13,000	500	4%
Central	2,900	2,842	(58)	-2%
West	1,900	1,938	38	2%