Question
Forecast Sales Volume and Sales Budget For 20Y6, Raphael Frame Company prepared the sales budget that follows. At the end of December 20Y6, the following
Forecast Sales Volume and Sales Budget
For 20Y6, Raphael Frame Company prepared the sales budget that follows.
At the end of December 20Y6, the following unit sales data were reported for the year:
Unit Sales 8" 10" Frame 12" 16" Frame
East 30,345 15,158
Central 8,034 5,880
West 6,912 4,998
Raphael Frame Company Sales Budget For the Year Ending December 31, 20Y6
Product and Area Unit Sales Volume Unit Selling Price Total Sales
8" 10" Frame:
East 28,900 $15 $433,500
Central 7,800 15 117,000
West 7,200 15 108,000
Total 43,900 $658,500
12" 16" Frame:
East 14,300 $16 $228,800
Central 6,000 16 96,000
West 4,900 16 78,400
Total 25,200 $403,200
Total revenue from sales $1,061,700 For the year ending December 31, 20Y7, unit sales are expected to follow the patterns established during the year ending December 31, 20Y6. The unit selling price for the 8" 10" frame is expected to increase to $16 and the unit selling price for the 12" 16" frame is expected to increase to $18, effective January 1, 20Y7.
Required: Compute the increase or decrease of actual unit sales for the year ended December 31, 20Y6, over budget. Use the minus sign to indicate a decrease in amount and percent. Round percents to the nearest whole percent.
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Assuming that the increase or decrease in actual sales to budget indicated in part (1) is to continue in 20Y7, compute the unit sales volume to be used for preparing the sales budget for the year ending December 31, 20Y7. Use the minus sign to indicate a decrease in percent. Round budgeted units to the nearest whole unit.
20Y6 Actual Units | Percentage Increase (Decrease) | 20Y7 Budgeted Units (rounded) | ||
8" 10" Frame: | ||||
East | % | |||
Central | % | |||
West | % | |||
12" 16" Frame: | ||||
East | % | |||
Central | % | |||
West | % |
3. Prepare a sales budget for the year ending December 31, 20Y7.
Raphael Frame Company | ||||||||||||||||||||||||||||||||||||||||
Sales Budget | ||||||||||||||||||||||||||||||||||||||||
For the Year Ending December 31, 20Y7 | ||||||||||||||||||||||||||||||||||||||||
Product and area | Unit sales volume | unit selling price | total sales | |||||||||||||||||||||||||||||||||||||
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