Forecast Sales Volume and Sales Budget

Guardian Framing Inc. prepared the following sales budget for 2016:

Guardian Framing Inc. Sales Budget For the Year Ending December 31, 2016
Product and Area		Unit Sales Volume		Unit Selling Price		Total Sales
8" 10" Frame:
East		30,300		$26		$787,800
Central		7,900		26		205,400
West		7,300		26		189,800
Total		45,500				$1,183,000
12" 16" Frame:
East		12,300		$41		$504,300
Central		5,200		41		213,200
West		4,200		41		172,200
Total		21,700				$889,700
Total revenue from sales						$2,072,700

At the end of December 2016, the following unit sales data were reported for the year:

	Unit Sales
	8" 10"		12" 16"
East	31,815		13,038
Central	8,137		5,096
West	7,081		4,284

For the year ending December 31, 2017, unit sales are expected to follow the patterns established during the year ending December 31, 2016. 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 $43, effective January 1, 2017.

Required:

1. Compute the increase or decrease of actual unit sales for the year ended December 31, 2016, 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 2016				Increase (Decrease) Actual Over Budget
		Budget		Actual Sales		Difference	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 2017, compute the unit sales volume to be used for preparing the sales budget for the year ending December 31, 2017. Use the minus sign to indicate a decrease in percent. Round budgeted units to the nearest whole unit.

		2016 Actual Units		Percentage Increase (Decrease)	2017 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, 2017.

Guardian Framing Inc.
Sales Budget
For the Year Ending December 31, 2017
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			$