Rembrandt Frame Company prepared the following sales budget for the current year:

At the end of December 2008, the following unit sales data were reported for the year:

For the year ending December 31, 2009, unit sales are expected to follow the patterns established during the year ending December 31, 2008. The unit selling price for the 8€ × 10€ frame is expected to change to $12, and the unit selling price for the 12€ × 16€ frame is expected to change to $21, effective January 1, 2009.

Instructions
1. Compute the increase or decrease of actual unit sales for the year ended December 31, 2008, 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 2009, compute the unit sales volume to be used for preparing the sales budget for the year ending December 31, 2009. 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.
2008 Percentage 2009
Actual Increase Budgeted
Units (Decrease) Units (rounded)

3. Prepare a sales budget for the year ending December 31,2009.

Transcribed Image Text:

Rembrandt Frame Company Sales Budget For the Year Ending December 31, 2008 Unit Sales Volume Unit Selling Price Product and Area Total Sales 8" × 10" Frame: 29,000 22,000 31,500 82,500 $14.00 14.00 14.00 406,000 308,000 441,000 1,155,000 12" x 16 Frame: 16,000 10,500 15,000 41,500 $24.00 24.00 24.00 384,000 252,000 360,000 996,000 Central West .. Total ...._ Total revenue from sales . .._. .. $2,151,000 Unit Sales 8" x 10 12" x 16 Frame Frame 29,725 30,240 East Centra22,770 West 16,480 10,710 14,325 Unit Sales, Year Ended 2008 Increase (Decrease) Actual Over Budget Budget Actual Sales Amount Percent 8" × 10" Frame: East . Central West 12" x 16" Frame: East . Central West