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 | 24,856 | 12,180 | ||
| Central | 5,814 | 2,744 | ||
| West | 5,088 | 1,957 | ||
| 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 | 23,900 | $35 | $836,500 | ||||
| Central | 5,700 | 35 | 199,500 | ||||
| West | 5,300 | 35 | 185,500 | ||||
| Total | 34,900 | $1,221,500 | |||||
| 12" 16" Frame: | |||||||
| East | 11,600 | $36 | $417,600 | ||||
| Central | 2,800 | 36 | 100,800 | ||||
| West | 1,900 | 36 | 68,400 | ||||
| Total | 16,300 | $586,800 | |||||
| Total revenue from sales | $1,808,300 | ||||||
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 $36 and the unit selling price for the 12" 16" frame is expected to increase to $38, effective January 1, 20Y7.
Required:
1. 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.
| Unit Sales, Year Ended 20Y6 | Increase (Decrease) Actual Over Budget | ||||||
| Budget | Actual Sales | Amount | Percent | ||||
| 8" 10" Frame: | |||||||
| East | fill in the blank 4f7e9af6607e04c_1 | fill in the blank 4f7e9af6607e04c_2 | fill in the blank 4f7e9af6607e04c_3 | fill in the blank 4f7e9af6607e04c_4% | |||
| Central | fill in the blank 4f7e9af6607e04c_5 | fill in the blank 4f7e9af6607e04c_6 | fill in the blank 4f7e9af6607e04c_7 | fill in the blank 4f7e9af6607e04c_8% | |||
| West | fill in the blank 4f7e9af6607e04c_9 | fill in the blank 4f7e9af6607e04c_10 | fill in the blank 4f7e9af6607e04c_11 | fill in the blank 4f7e9af6607e04c_12% | |||
| 12" 16" Frame: | |||||||
| East | fill in the blank 4f7e9af6607e04c_13 | fill in the blank 4f7e9af6607e04c_14 | fill in the blank 4f7e9af6607e04c_15 | fill in the blank 4f7e9af6607e04c_16% | |||
| Central | fill in the blank 4f7e9af6607e04c_17 | fill in the blank 4f7e9af6607e04c_18 | fill in the blank 4f7e9af6607e04c_19 | fill in the blank 4f7e9af6607e04c_20% | |||
| West | fill in the blank 4f7e9af6607e04c_21 | fill in the blank 4f7e9af6607e04c_22 | fill in the blank 4f7e9af6607e04c_23 | fill in the blank 4f7e9af6607e04c_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. 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 | fill in the blank 4f7e9af6607e04c_25 | fill in the blank 4f7e9af6607e04c_26% | fill in the blank 4f7e9af6607e04c_27 | ||
| Central | fill in the blank 4f7e9af6607e04c_28 | fill in the blank 4f7e9af6607e04c_29% | fill in the blank 4f7e9af6607e04c_30 | ||
| West | fill in the blank 4f7e9af6607e04c_31 | fill in the blank 4f7e9af6607e04c_32% | fill in the blank 4f7e9af6607e04c_33 | ||
| 12" 16" Frame: | |||||
| East | fill in the blank 4f7e9af6607e04c_34 | fill in the blank 4f7e9af6607e04c_35% | fill in the blank 4f7e9af6607e04c_36 | ||
| Central | fill in the blank 4f7e9af6607e04c_37 | fill in the blank 4f7e9af6607e04c_38% | fill in the blank 4f7e9af6607e04c_39 | ||
| West | fill in the blank 4f7e9af6607e04c_40 | fill in the blank 4f7e9af6607e04c_41% | fill in the blank 4f7e9af6607e04c_42 | ||
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 5d134dfeb01ffd3_1 | $fill in the blank 5d134dfeb01ffd3_2 | $fill in the blank 5d134dfeb01ffd3_3 |
| Central | fill in the blank 5d134dfeb01ffd3_4 | fill in the blank 5d134dfeb01ffd3_5 | fill in the blank 5d134dfeb01ffd3_6 |
| West | fill in the blank 5d134dfeb01ffd3_7 | fill in the blank 5d134dfeb01ffd3_8 | fill in the blank 5d134dfeb01ffd3_9 |
| Total | fill in the blank 5d134dfeb01ffd3_10 | $fill in the blank 5d134dfeb01ffd3_11 | |
| 12" 16" Frame: | |||
| East | fill in the blank 5d134dfeb01ffd3_12 | $fill in the blank 5d134dfeb01ffd3_13 | $fill in the blank 5d134dfeb01ffd3_14 |
| Central | fill in the blank 5d134dfeb01ffd3_15 | fill in the blank 5d134dfeb01ffd3_16 | fill in the blank 5d134dfeb01ffd3_17 |
| West | fill in the blank 5d134dfeb01ffd3_18 | fill in the blank 5d134dfeb01ffd3_19 | fill in the blank 5d134dfeb01ffd3_20 |
| Total | fill in the blank 5d134dfeb01ffd3_21 | $fill in the blank 5d134dfeb01ffd3_22 | |
| Total revenue from sales | $fill in the blank 5d134dfeb01ffd3_23 | ||
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