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
	Central
	West
12" 16" Frame:
	East
	Central
	West

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
	Central
	West
12" 16" Frame:
	East
	Central
	West

Question Content Area

3. Prepare a sales budget for the year ending December 31, 20Y7.

Product and Area	Unit Sales Volume	Unit Selling Price	Total Sales
8" 10" Frame:
East
Central
West
Total
12" 16" Frame:
East
Central
West
Total
Total revenue from sales