Forecast Sales Volume andSales Budget

Sentinel Systems Inc. prepared the following sales budget for 20Y8:

Sentinel Systems Inc.

Sales Budget

For the Year Ending December 31, 20Y8

Product and Area Unit Sales Volume Unit Selling Price Total Sales

Home Alert System:

United States 1,700 $200 $340,000

Europe 580 200 116,000

Asia 450 200 90,000

Total 2,730 $546,000

Business Alert System:

United States 980 $750 735,000

Europe 350 750 262,500

Asia 240 750 180,000

Total 1,570 $1,177,500

Total revenue from sales$1,723,500

At the end of December 20Y8, the following unit sales data were reported for the year:

Unit Sales

Home Alert System Business Alert System

United States 1,734 1,078

Europe 609 329

Asia 432 252

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 Home Alert System is expected to increase to $250, and the unit selling price for the Business Alert System is expected to be increased to $820, effective January 1, 20Y9.

1.Compute the increase or decrease of actual unit sales for the year ended December 31, 20Y8, overbudget.

Enter any decreases beginning with a minus (-) sign.

Home Alert System:

United States

Europe

Asia

Business Alert System:

United States

Asia

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.

3.Prepare a sales budget for the year ending December 31, 20Y9.