Forecast Sales Volume and Sales Budget

For $20$Y$6,$ Raphael Frame Company prepared the sales budget that follows.

At the end of December $20$Y$6,$ the following unit sales data were reported for the year:

Unit Sales

$8"\backslash$times $10"$ Frame

$12"\backslash$times $16"$ Frame

East $8,7553,686$

Central $6,5103,090$

West $12,3485,616$

Raphael Frame Company

Sales Budget

For the Year Ending December $31,20$Y$6$

Product and Area Unit Sales

Volume Unit Selling

Price Total Sales

$8"\backslash$times $10"$ Frame:

East $8,500$ $$16$ $$136,000$

Central $6,2001699,200$

West $12,60016201,600$

Total $27,300$ $$436,800$

$12"\backslash$times $16"$ Frame:

East $3,800$ $$30$ $$114,000$

Central $3,0003090,000$

West $5,40030162,000$

Total $12,200$ $$366,000$

Total revenue from sales $$802,800$

For the year ending December $31,20$Y$7,$ unit sales are expected to follow the patterns established during the year ending December $31,20$Y$6.$ The unit selling price for the $8"\backslash$times $10"$ frame is expected to increase to $$17,$ and the unit selling price for the $12"\backslash$times $16"$ frame is expected to increase to $$32,$ effective January $1,20$Y$7.$

Required:

Question Content Area

$1.$ Compute the increase or decrease of actual unit sales for the year ended December $31,20$Y$6,$ over budget.

Enter any decreases beginning with a minus $(-)$ sign.

Unit Sales,

Year Ended $20$Y$6$ Increase $($Decrease$)$

Actual Over Budget

Budget Actual Sales Amount Percent

$8"\backslash$times $10"$ Frame:

East fill in the blank $757$ba$2$fc$6$f$82$fe$1\_1$

fill in the blank

fill in the blank

fill in the blank

$\%$

Central fill in the blank

fill in the blank

fill in the blank

fill in the blank

$\%$

West fill in the blank

fill in the blank

fill in the blank

fill in the blank

$\%$

$12"\backslash$times $16"$ Frame:

East fill in the blank

fill in the blank

fill in the blank

fill in the blank

$\%$

Central fill in the blank

fill in the blank

fill in the blank

fill in the blank

$\%$

West fill in the blank

fill in the blank

fill in the blank

fill in the blank

$2.$ Assuming that the increase or decrease in actual sales to budget indicated in part $(1)$ is to continue in $20$Y$7,$ compute the unit sales volume to be used for preparing the sales budget for the year ending December $31,20$Y$7.$

Enter any decreases beginning with a minus $(-)$ sign. Round budgeted units to the nearest whole unit.

$20$Y$6$

Actual

Units Percentage

Increase

$($Decrease$)20$Y$7$

Budgeted

Units $($rounded$)$

$8"\backslash$times $10"$ Frame:

East fill in the blank

fill in the blank

$\%$ fill in the blank

Central fill in the blank

fill in the blank

$\%$ fill in the blank

West fill in the blank

fill in the blank

$\%$ fill in the blank

$12"\backslash$times $16"$ Frame:

East fill in the blank

fill in the blank

$\%$ fill in the blank

Central fill in the blank

fill in the blank

$\%$ fill in the blank

West fill in the blank

fill in the blank

$\%$ fill in the blank

Question Content Area

$3.$ Prepare a sales budget for the year ending December $31,20$Y$7.$

Raphael Frame Company

Sales Budget

For the Year Ending December $31,20$Y$7$

Product and Area Unit Sales Volume Unit Selling Price Total Sales

$8"\backslash$times $10"$ Frame:

East fill in the blank

$fill in the blank

$fill in the blank

Central fill in the blank

fill in the blank

fill in the blank

West fill in the blank

fill in the blank

fill in the blank

Total fill in the blank

$fill in the blank

$12"\backslash$times $16"$ Frame:

East fill in the blank

$fill in the blank

$fill in the blank

Central fill in the blank

fill in the blank

fill in the blank

West fill in the blank

fill in the blank

fill in the blank

Total fill in the blank

$fill in the blank

Total revenue from sales fill in the blank