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	29,820		16,112
Central	7,004		4,214
West	6,014		3,090

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		28,400		$20		$568,000
Central		6,800		20		136,000
West		6,200		20		124,000
Total		41,400				$828,000
12" 16" Frame:
East		15,200		$21		$319,200
Central		4,300		21		90,300
West		3,000		21		63,000
Total		22,500				$472,500
Total revenue from sales						$1,300,500

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:

Question Content Area

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	fill in the blank cd80c10aa064005_1		fill in the blank cd80c10aa064005_2		fill in the blank cd80c10aa064005_3	fill in the blank cd80c10aa064005_4 %
	Central	fill in the blank cd80c10aa064005_5		fill in the blank cd80c10aa064005_6		fill in the blank cd80c10aa064005_7	fill in the blank cd80c10aa064005_8 %
	West	fill in the blank cd80c10aa064005_9		fill in the blank cd80c10aa064005_10		fill in the blank cd80c10aa064005_11	fill in the blank cd80c10aa064005_12 %
12" 16" Frame:
	East	fill in the blank cd80c10aa064005_13		fill in the blank cd80c10aa064005_14		fill in the blank cd80c10aa064005_15	fill in the blank cd80c10aa064005_16 %
	Central	fill in the blank cd80c10aa064005_17		fill in the blank cd80c10aa064005_18		fill in the blank cd80c10aa064005_19	fill in the blank cd80c10aa064005_20 %
	West	fill in the blank cd80c10aa064005_21		fill in the blank cd80c10aa064005_22		fill in the blank cd80c10aa064005_23	fill in the blank cd80c10aa064005_24 %

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	fill in the blank cd80c10aa064005_25		fill in the blank cd80c10aa064005_26 %	fill in the blank cd80c10aa064005_27
	Central	fill in the blank cd80c10aa064005_28		fill in the blank cd80c10aa064005_29 %	fill in the blank cd80c10aa064005_30
	West	fill in the blank cd80c10aa064005_31		fill in the blank cd80c10aa064005_32 %	fill in the blank cd80c10aa064005_33
12" 16" Frame:
	East	fill in the blank cd80c10aa064005_34		fill in the blank cd80c10aa064005_35 %	fill in the blank cd80c10aa064005_36
	Central	fill in the blank cd80c10aa064005_37		fill in the blank cd80c10aa064005_38 %	fill in the blank cd80c10aa064005_39
	West	fill in the blank cd80c10aa064005_40		fill in the blank cd80c10aa064005_41 %	fill in the blank cd80c10aa064005_42

Question Content Area

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	fill in the blank 4a2cca070fb8036_1	$fill in the blank 4a2cca070fb8036_2	$fill in the blank 4a2cca070fb8036_3
Central	fill in the blank 4a2cca070fb8036_4	fill in the blank 4a2cca070fb8036_5	fill in the blank 4a2cca070fb8036_6
West	fill in the blank 4a2cca070fb8036_7	fill in the blank 4a2cca070fb8036_8	fill in the blank 4a2cca070fb8036_9
Total	fill in the blank 4a2cca070fb8036_10		$fill in the blank 4a2cca070fb8036_11
12" 16" Frame:
East	fill in the blank 4a2cca070fb8036_12	$fill in the blank 4a2cca070fb8036_13	$fill in the blank 4a2cca070fb8036_14
Central	fill in the blank 4a2cca070fb8036_15	fill in the blank 4a2cca070fb8036_16	fill in the blank 4a2cca070fb8036_17
West	fill in the blank 4a2cca070fb8036_18	fill in the blank 4a2cca070fb8036_19	fill in the blank 4a2cca070fb8036_20
Total	fill in the blank 4a2cca070fb8036_21		$fill in the blank 4a2cca070fb8036_22
Total revenue from sales			$fill in the blank 4a2cca070fb8036_23