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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

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 25,853 13,416
Central 6,060 2,744
West 5,335 1,854
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 25,100 $19 $476,900
Central 6,000 19 114,000
West 5,500 19 104,500
Total 36,600 $695,400
12" 16" Frame:
East 12,900 $34 $438,600
Central 2,800 34 95,200
West 1,800 34 61,200
Total 17,500 $595,000
Total revenue from sales $1,290,400

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 $20 and the unit selling price for the 12" 16" frame is expected to increase to $36, 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

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