1. Compute the increase or decrease of actual unit sales for the year ended December 31, 2014, over budget. Use the minus sign to indicate a decrease in amount and percent. Round percents to the nearest whole percent.

2. Assuming that the increase or decrease in actual sales to budget indicated in part (1) is to continue in 2015, compute the unit sales volume to be used for preparing the sales budget for the year ending December 31, 2015. Use the minus sign to indicate a decrease in percent. Round budgeted units to the nearest whole unit.

3. Prepare a sales budget for the year ending December 31, 2015.

Forecast Sales Volume and Sales Budget

Guardian Framing Inc. prepared the following sales budget for the current year:

Guardian Framing Inc. Sales Budget For the Year Ending December 31, 2014
Product and Area		Unit Sales Volume		Unit Selling Price		Total Sales
8" 10" Frame:
East		21,800		$14		$305,200
Central		6,100		14		85,400
West		5,700		14		79,800
Total		33,600				$470,400
12" 16" Frame:
East		14,300		$15		$214,500
Central		5,100		15		76,500
West		4,000		15		60,000
Total		23,400				$351,000
Total revenue from sales						$821,400

At the end of December 2014, the following unit sales data were reported for the year:

	Unit Sales
	8" 10"		12" 16"
East	22,890		15,158
Central	6,283		4,998
West	5,472		4,120

For the year ending December 31, 2015, unit sales are expected to follow the patterns established during the year ending December 31, 2014. The unit selling price for the 8" 10" frame is expected to increase to $15 and the unit selling price for the 12" 16" frame is expected to increase to $17, effective January 1, 2015.