For 2016, Raphael Frame Company prepared the sales budget that follows.

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

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 $17 and the unit selling price for the 12" × 16"
frame is expected to increase to $32, effective January 1, 2017.
Instructions
1. Compute the increase or decrease of actual unit sales for the year ended December 31,
2016, over budget. Place your answers in a columnar table with the following format:

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. Place your answers in a columnar table similar to that in part (1) but with the following column heads. Round budgeted units to the nearest unit.

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

Transcribed Image Text:

Unit Sales 8" x 10" Frame 2"x16" Frame East Central West 8,755 6,510 12,348 3,686 3,090 5,616 Raphael Frame Company Sales Budget For the Year Ending December 31, 2016 Unit Sales Volume Unit Selling Price Total Sales Product and Area 8" x 10" Frame: $16 8,500 6,200 12,600 27,300 136,000 99,200 201,600 $436,800 East . . West 12"X 16" Frame: 3,800 3,000 5,400 12,200 $30 30 30 East. . . . 114,000 90,000 162,000 366,000 802,800 West Total.. . . Total revenue from sales Unit Sales, Year Ended 2016 Increase (Decrease) Actual Over Budget Amount Percent Budget Actual Sales 8" x 10 Frame: West 12" x 16" Frame: West 2016 Actual Units Percentage Increase (Decrease) 2017 Budgeted Units (rounded)