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	28,035		10,812
Central	7,416		2,744
West	6,432		1,957

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		26,700		$22		$587,400
Central		7,200		22		158,400
West		6,700		22		147,400
Total		40,600				$893,200
12" 16" Frame:
East		10,200		$37		$377,400
Central		2,800		37		103,600
West		1,900		37		70,300
Total		14,900				$551,300
Total revenue from sales						$1,444,500

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 $23 and the unit selling price for the 12" 16" frame is expected to increase to $39, 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 95aa00040fd5072_1		fill in the blank 95aa00040fd5072_2		fill in the blank 95aa00040fd5072_3	fill in the blank 95aa00040fd5072_4 %
	Central	fill in the blank 95aa00040fd5072_5		fill in the blank 95aa00040fd5072_6		fill in the blank 95aa00040fd5072_7	fill in the blank 95aa00040fd5072_8 %
	West	fill in the blank 95aa00040fd5072_9		fill in the blank 95aa00040fd5072_10		fill in the blank 95aa00040fd5072_11	fill in the blank 95aa00040fd5072_12 %
12" 16" Frame:
	East	fill in the blank 95aa00040fd5072_13		fill in the blank 95aa00040fd5072_14		fill in the blank 95aa00040fd5072_15	fill in the blank 95aa00040fd5072_16 %
	Central	fill in the blank 95aa00040fd5072_17		fill in the blank 95aa00040fd5072_18		fill in the blank 95aa00040fd5072_19	fill in the blank 95aa00040fd5072_20 %
	West	fill in the blank 95aa00040fd5072_21		fill in the blank 95aa00040fd5072_22		fill in the blank 95aa00040fd5072_23	fill in the blank 95aa00040fd5072_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 95aa00040fd5072_25		fill in the blank 95aa00040fd5072_26 %	fill in the blank 95aa00040fd5072_27
	Central	fill in the blank 95aa00040fd5072_28		fill in the blank 95aa00040fd5072_29 %	fill in the blank 95aa00040fd5072_30
	West	fill in the blank 95aa00040fd5072_31		fill in the blank 95aa00040fd5072_32 %	fill in the blank 95aa00040fd5072_33
12" 16" Frame:
	East	fill in the blank 95aa00040fd5072_34		fill in the blank 95aa00040fd5072_35 %	fill in the blank 95aa00040fd5072_36
	Central	fill in the blank 95aa00040fd5072_37		fill in the blank 95aa00040fd5072_38 %	fill in the blank 95aa00040fd5072_39
	West	fill in the blank 95aa00040fd5072_40		fill in the blank 95aa00040fd5072_41 %	fill in the blank 95aa00040fd5072_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 4e9f16035fc0012_1	$fill in the blank 4e9f16035fc0012_2	$fill in the blank 4e9f16035fc0012_3
Central	fill in the blank 4e9f16035fc0012_4	fill in the blank 4e9f16035fc0012_5	fill in the blank 4e9f16035fc0012_6
West	fill in the blank 4e9f16035fc0012_7	fill in the blank 4e9f16035fc0012_8	fill in the blank 4e9f16035fc0012_9
Total	fill in the blank 4e9f16035fc0012_10		$fill in the blank 4e9f16035fc0012_11
12" 16" Frame:
East	fill in the blank 4e9f16035fc0012_12	$fill in the blank 4e9f16035fc0012_13	$fill in the blank 4e9f16035fc0012_14
Central	fill in the blank 4e9f16035fc0012_15	fill in the blank 4e9f16035fc0012_16	fill in the blank 4e9f16035fc0012_17
West	fill in the blank 4e9f16035fc0012_18	fill in the blank 4e9f16035fc0012_19	fill in the blank 4e9f16035fc0012_20
Total	fill in the blank 4e9f16035fc0012_21		$fill in the blank 4e9f16035fc0012_22
Total revenue from sales			$fill in the blank 4e9f16035fc0012_23