Forecast Sales Volume and Sales Budget

For 20Y8, Raphael Frame Company prepared the sales budget that follows.

At the end of December 20Y8, the following unit sales data were reported for the year:

	Unit Sales
	8" 10" Frame		12" 16" Frame
East	31,096		13,125
Central	7,650		4,900
West	6,624		4,080

Raphael Frame Company Sales Budget For the Year Ending December 31, 20Y8
Product and Area		Unit Sales Volume		Unit Selling Price		Total Sales
8" 10" Frame:
East		29,900		$26		$777,400
Central		7,500		26		195,000
West		6,900		26		179,400
Total		44,300				$1,151,800
12" 16" Frame:
East		12,500		$41		$512,500
Central		5,000		41		205,000
West		4,000		41		164,000
Total		21,500				$881,500
Total revenue from sales						$2,033,300

For the year ending December 31, 20Y9, unit sales are expected to follow the patterns established during the year ending December 31, 20Y8. The unit selling price for the 8" 10" frame is expected to increase to $27 and the unit selling price for the 12" 16" frame is expected to increase to $43, effective January 1, 20Y9.

Required:

1. Compute the increase or decrease of actual unit sales for the year ended December 31, 20Y8, 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 20Y8				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 20Y9, compute the unit sales volume to be used for preparing the sales budget for the year ending December 31, 20Y9. Use the minus sign to indicate a decrease in percent. Round budgeted units to the nearest whole unit.

		20Y8 Actual Units		Percentage Increase (Decrease)	20Y9 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, 20Y9.

Raphael Frame Company Sales Budget For the Year Ending December 31, 20Y9

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