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	22,680		15,900
Central	5,768		4,312
West	5,044		3,296

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		21,600		$34		$734,400
Central		5,600		34		190,400
West		5,200		34		176,800
Total		32,400				$1,101,600
12" 16" Frame:
East		15,000		$49		$735,000
Central		4,400		49		215,600
West		3,200		49		156,800
Total		22,600				$1,107,400
Total revenue from sales						$2,209,000

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 $35 and the unit selling price for the 12" 16" frame is expected to increase to $51, 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			$___