Guardian Devices Inc. prepared the following sales budget for the current year: At the end of December
Question:
Guardian Devices Inc. prepared the following sales budget for the current year:
At the end of December 2010, the following unit sales data were reported for the year:
For the year ending December 31, 2011, unit sales are expected to follow the patterns established during the year ending December 31, 2010. The unit selling price for the Home Alert System is expected to increase to $270, and the unit selling price for the Business Alert System is expected to be decreased to $880, effective January 1, 2011.Instructions1. Compute the increase or decrease of actual unit sales for the year ended December 31, 2010, over budget. Place your answers in a columnar table with the following format:2. Assuming that the trend of sales indicated in part (1) is to continue in 2011, compute the unit sales volume to be used for preparing the sales budget for the year ending December 31, 2011. Place your answers in a columnar table similar to that in part (1) above but with the following column heads. Round budgeted units to the nearest unit.3. Prepare a sales budget for the year ending December 31,2011.
Step by Step Answer:
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren