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	22,365		15,052
Central	5,253		3,626
West	4,512		2,678

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		21,300		$26		$553,800
Central		5,100		26		132,600
West		4,700		26		122,200
Total		31,100				$808,600
12" 16" Frame:
East		14,200		$27		$383,400
Central		3,700		27		99,900
West		2,600		27		70,200
Total		20,500				$553,500
Total revenue from sales						$1,362,100

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 $27 and the unit selling price for the 12" 16" frame is expected to increase to $29, 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			%

Feedback

To calculate the difference subtract budget from actual sales.

Learning Objective 4.

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			$