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	8,755		3,686
Central	6,510		3,090
West	12,348		5,616

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		8,500		$16		$136,000
Central		6,200		16		99,200
West		12,600		16		201,600
Total		27,300				$436,800
12" 16" Frame:
East		3,800		$30		$114,000
Central		3,000		30		90,000
West		5,400		30		162,000
Total		12,200				$366,000
Total revenue from sales						$802,800

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 $17, and the unit selling price for the 12" 16" frame is expected to increase to $32, effective January 1, 20Y7.

Required:

Question Content Area

1. Compute the increase or decrease of actual unit sales for the year ended December 31, 20Y6, over budget.

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

		Unit Sales, Year Ended 20Y6				Increase (Decrease) Actual Over Budget
		Budget		Actual Sales		Amount	Percent
8" 10" Frame:
	East	fill in the blank edba4c067fa9fb9_1		fill in the blank edba4c067fa9fb9_2		fill in the blank edba4c067fa9fb9_3	fill in the blank edba4c067fa9fb9_4%
	Central	fill in the blank edba4c067fa9fb9_5		fill in the blank edba4c067fa9fb9_6		fill in the blank edba4c067fa9fb9_7	fill in the blank edba4c067fa9fb9_8%
	West	fill in the blank edba4c067fa9fb9_9		fill in the blank edba4c067fa9fb9_10		fill in the blank edba4c067fa9fb9_11	fill in the blank edba4c067fa9fb9_12%
12" 16" Frame:
	East	fill in the blank edba4c067fa9fb9_13		fill in the blank edba4c067fa9fb9_14		fill in the blank edba4c067fa9fb9_15	fill in the blank edba4c067fa9fb9_16%
	Central	fill in the blank edba4c067fa9fb9_17		fill in the blank edba4c067fa9fb9_18		fill in the blank edba4c067fa9fb9_19	fill in the blank edba4c067fa9fb9_20%
	West	fill in the blank edba4c067fa9fb9_21		fill in the blank edba4c067fa9fb9_22		fill in the blank edba4c067fa9fb9_23	fill in the blank edba4c067fa9fb9_24%

2. 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.

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

		20Y6 Actual Units		Percentage Increase (Decrease)	20Y7 Budgeted Units (rounded)
8" 10" Frame:
	East	fill in the blank edba4c067fa9fb9_25		fill in the blank edba4c067fa9fb9_26%	fill in the blank edba4c067fa9fb9_27
	Central	fill in the blank edba4c067fa9fb9_28		fill in the blank edba4c067fa9fb9_29%	fill in the blank edba4c067fa9fb9_30
	West	fill in the blank edba4c067fa9fb9_31		fill in the blank edba4c067fa9fb9_32%	fill in the blank edba4c067fa9fb9_33
12" 16" Frame:
	East	fill in the blank edba4c067fa9fb9_34		fill in the blank edba4c067fa9fb9_35%	fill in the blank edba4c067fa9fb9_36
	Central	fill in the blank edba4c067fa9fb9_37		fill in the blank edba4c067fa9fb9_38%	fill in the blank edba4c067fa9fb9_39
	West	fill in the blank edba4c067fa9fb9_40		fill in the blank edba4c067fa9fb9_41%	fill in the blank edba4c067fa9fb9_42

Question Content Area

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
8" 10" Frame:
East	fill in the blank 6cb4abf78f8100a_1	$fill in the blank 6cb4abf78f8100a_2	$fill in the blank 6cb4abf78f8100a_3
Central	fill in the blank 6cb4abf78f8100a_4	fill in the blank 6cb4abf78f8100a_5	fill in the blank 6cb4abf78f8100a_6
West	fill in the blank 6cb4abf78f8100a_7	fill in the blank 6cb4abf78f8100a_8	fill in the blank 6cb4abf78f8100a_9
Total	fill in the blank 6cb4abf78f8100a_10		$fill in the blank 6cb4abf78f8100a_11
12" 16" Frame:
East	fill in the blank 6cb4abf78f8100a_12	$fill in the blank 6cb4abf78f8100a_13	$fill in the blank 6cb4abf78f8100a_14
Central	fill in the blank 6cb4abf78f8100a_15	fill in the blank 6cb4abf78f8100a_16	fill in the blank 6cb4abf78f8100a_17
West	fill in the blank 6cb4abf78f8100a_18	fill in the blank 6cb4abf78f8100a_19	fill in the blank 6cb4abf78f8100a_20
Total	fill in the blank 6cb4abf78f8100a_21		$fill in the blank 6cb4abf78f8100a_22
Total revenue from sales			$fill in the blank 6cb4abf78f8100a_23