Sentinel Systems Inc. prepared the following sales budget for 20Y8:

At the end of December 20Y8, the following unit sales data were reported for the year:

For the year ending December 31, 20Y9, unit sales are expected to follow the patterns established during the year ending December 31, 20Y8. The unit selling price for the Home Alert System is expected to increase to $250, and the unit selling price for the Business Alert System is expected to be increased to $820, effective January 1, 20Y9.
Instructions
1. Compute the increase or decrease of actual unit sales for the year ended December 31, 20Y8, 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 20Y9, compute the unit sales volume to be used for preparing the sales budget for the year ending December 31, 20Y9. 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, 20Y9.

Transcribed Image Text:

Sentinel Systems Inc. Sales Budget For the Year Ending December 31, 20YS Unit Sales Volume Unit Selling Price Total Sales Product and Area Home Alert System: 1,700 580 450 2,730 $200 200 200 340,000 116,000 90,000 $546,000 Business Alert System: 980 350 240 1.570 $750 750 750 $ 735,000 262,500 180,000 $1,177,500 $1,723500 Unit Sales United States Europe Asia Home Alert System 1,734 609 432 Business Alert System 1,078 329 252 Unit Sales, Year Ended 20Y8 Increase (Decrease Actual Over Budget Budget Actual Sales Amount Percent Home Alert System: Business Alert System: 20Y8 Actual Units Percentage Increase (Decrease) 20Y9 Budgeted Units (rounded)