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	29,120		10,080
Central	7,752		3,234
West	6,720		2,575

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		28,000		$28		$784,000
Central		7,600		28		212,800
West		7,000		28		196,000
Total		42,600				$1,192,800
12" 16" Frame:
East		9,600		$43		$412,800
Central		3,300		43		141,900
West		2,500		43		107,500
Total		15,400				$662,200
Total revenue from sales						$1,855,000

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 $29 and the unit selling price for the 12" 16" frame is expected to increase to $45, 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	fill in the blank		fill in the blank		fill in the blank	fill in the blank
	Central	fill in the blank		fill in the blank		fill in the blank	fill in the blank
	West	fill in the blan		fill in the blank		fill in the blank	fill in the blank %
12" 16" Frame:
	East	fill in the blank fffc50fd0058f95_13		fill in the blank fffc50fd0058f95_14		fill in the blank fffc50fd0058f95_15	fill in the blank fffc50fd0058f95_16 %
	Central	fill in the blank fffc50fd0058f95_17		fill in the blank fffc50fd0058f95_18		fill in the blank fffc50fd0058f95_19	fill in the blank fffc50fd0058f95_20 %
	West	fill in the blank fffc50fd0058f95_21		fill in the blank fffc50fd0058f95_22		fill in the blank fffc50fd0058f95_23	fill in the blank fffc50fd0058f95_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		fill in the blank	fill in the blank
	Central	fill in the blank		fill in the blank	fill in the blank
	West	fill in the blank		fill in the blank	fill in the blank
12" 16" Frame:
	East	fill in the blank		fill in the blank	fill in the blank
	Central	fill in the blank		fill in the blan %	fill in the blank
	West	fill in the blank		fill in the blank %	fill in the blank

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	$fill in the blank	$fill in the blank
Central	fill in the blank	fill in the blank	fill in the blank
West	fill in the blank	fill in the blank	fill in the blank
Total	fill in the blank		$fill in the blank
12" 16" Frame:
East	fill in the blank	$fill in the blank	$fill in the blank
Central	fill in the blank	fill in the blank	fill in the blank
West	fill in the blank	fill in the blank	fill in the blank
Total	fill in the blank		$fill in the blank
Total revenue from sales			$fill in the blank