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

East33,600 15,158

Central7,931 5,488

West6,720 4,488

Raphael Frame Company Sales Budget For the Year Ending December 31, 20Y8

Product and AreaUnit Sales VolumeUnit Selling PriceTotal Sales

8" 10" Frame:

East32,000 $20 $640,000

Central7,700 20 154,000

West7,000 20 140,000

Total46,700 $934,000

12" 16" Frame:

East14,300 $21 $300,300

Central5,600 21 117,600

West4,400 21 92,400

Total24,300 $510,300

Total revenue from sales $1,444,300

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 $21 and the unit selling price for the 12" 16" frame is expected to increase to $23, 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 20Y8Increase (Decrease) Actual Over Budget

BudgetActual SalesAmountPercent

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 UnitsPercentage 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 AreaUnit Sales VolumeUnit Selling PriceTotal Sales

8" 10" Frame:

East$$

Central

West

Total$

12" 16" Frame:

East$$

Central

West

Total$

Total revenue from sales$