Forecast sales volume and sales budget

For $20$Y$8,$ Raphael Frame Company prepared the sales budget that follows.

At the end of December $20$Y$8,$ the following unit sales data were reported for the year:

Line Item Description Unit Sales

$8"\backslash$times $10"$

Frame Unit Sales

$12"\backslash$times $16"$

Frame

East $31,2099,568$

Central $7,6761,862$

West $6,7901,224$

Raphael Frame Company

Sales Budget

For the Year Ending December $31,20$Y$8$

Product and Area Unit Sales

Volume Unit Selling

Price Total Sales

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

East $30,300$ $$26$ $$787,800$

Central $7,60026197,600$

West $7,00026182,000$

Total $44,900$ $$1,167,400$

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

East $9,200$ $$27$ $$248,400$

Central $1,9002751,300$

West $1,2002732,400$

Total $12,300$ $$332,100$

Total revenue from sales $$1,499,500$

For the year ending December $31,20$Y$9,$ unit sales are expected to follow the patterns established during the year ending December $31,20$Y$8.$ The unit selling price for the $8"\backslash$times $10"$ frame is expected to increase to $$27$ and the unit selling price for the $12"\backslash$times $16"$ frame is expected to increase to $$29,$ effective January $1,20$Y$9.$

Required:

Question Content Area

$1.$ Compute the increase or decrease of actual unit sales for the year ended December $31,20$Y$8,$ over budget. Use the minus sign to indicate a decrease in amount and percent. Round percents to the nearest whole percent.

Line Item Description Unit Sales,

Year Ended

$20$Y$8$ Budget Unit Sales,

Year Ended $20$Y$8$

Actual Sales Increase $($Decrease$)$

Actual Over

Budget Amount Increase $($Decrease$)$

Actual Over

Budget Percent

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

East fill in the blank $1$ of $24$ fill in the blank $2$ of $24$ fill in the blank $3$ of $24$ fill in the blank $4$ of $24\%$

Central fill in the blank $5$ of $24$ fill in the blank $6$ of $24$ fill in the blank $7$ of $24$ fill in the blank $8$ of $24\%$

West fill in the blank $9$ of $24$ fill in the blank $10$ of $24$ fill in the blank $11$ of $24$ fill in the blank $12$ of $24\%$

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

East fill in the blank $13$ of $24$ fill in the blank $14$ of $24$ fill in the blank $15$ of $24$ fill in the blank $16$ of $24\%$

Central fill in the blank $17$ of $24$ fill in the blank $18$ of $24$ fill in the blank $19$ of $24$ fill in the blank $20$ of $24\%$

West fill in the blank $21$ of $24$ fill in the blank $22$ of $24$ fill in the blank $23$ of $24$ fill in the blank $24$ of $24\%$

$2.$ Assuming that the increase or decrease in actual sales to budget indicated in part $(1)$ is to continue in $20$Y$9,$ compute the unit sales volume to be used for preparing the sales budget for the year ending December $31,20$Y$9.$ Use the minus sign to indicate a decrease in percent. Round budgeted units to the nearest whole unit.

Line Item Description $20$Y$8$

Actual

Units Percentage

Increase

$($Decrease$)20$Y$9$

Budgeted

Units $($rounded$)$

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

East fill in the blank $1$ of $18$ fill in the blank $2$ of $18\%$ fill in the blank $3$ of $18$

Central fill in the blank $4$ of $18$ fill in the blank $5$ of $18\%$ fill in the blank $6$ of $18$

West fill in the blank $7$ of $18$ fill in the blank $8$ of $18\%$ fill in the blank $9$ of $18$

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

East fill in the blank $10$ of $18$ fill in the blank $11$ of $18\%$ fill in the blank $12$ of $18$

Central fill in the blank $13$ of $18$ fill in the blank $14$ of $18\%$ fill in the blank $15$ of $18$

West fill in the blank $16$ of $18$ fill in the blank $17$ of $18\%$ fill in the blank $18$ of $18$

Question Content Area

$3.$ Prepare a sales budget for the year ending December $31,20$Y$9.$

Raphael Frame Company

Sales Budget

For the Year Ending December $31,20$Y$9$

Product and Area Unit

Sales

Volume Unit

Selling

Price

Total

Sales

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

East East $East $East

Central Central Central Central

West West West West

Total Total $Total

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

East East $East $East

Central Central Central Central

West West West West

Total Total $Total

Total revenue from sales $Total revenue from sales