PR 22-1B Forecast sales volume and sales budget Sentinel Systems Inc. prepared the following sales budget for 2016: OBJ.4 Unit Selling Price Total Sales Sentinel Systems Inc. Sales Budget For the Year Ending December 31, 2016 Unit Sales Product and Area Volume Home Alert System: United States .. 1,700 Europe .......... 580 Asia. 450 Total .......... Business Alert System: United States. Europe ..................... 350 Asia. 240 Total .................... 1,570 Total revenue from sales ....................... $200 200 $ 340,000 116,000 90,000 $ 546,000 200 2,730 980 $750 750 750 $ 735,000 262,500 180,000 $1,177,500 $1,723,500 At the end of December 2016, the following unit sales data were reported for the year: 329 Unit Sales Home Alert Business Alert System System United States 1,734 1,078 Europe 609 Asia 432 252 For the year ending December 31, 2017, unit sales are expected to follow the pat- terns established during the year ending December 31, 2016. 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 decreased to $820, effective January 1, 2017. Instructions 1. Compute the increase or decrease of actual unit sales for the year ended December 31, 2016, over budget. Place your answers in a columnar table with the following format: Unit Sales, Increase (Decrease) Year Ended 2016 Actual Over Budget Budget Actual Sales Amount Percent Home Alert System: United States .... Europe ........... Asia ........ Business Alert System: United States..... Europe ........... Asia ...... 2. Assuming that the increase or decrease in actual sales to budget indicated in part (1is to continue in 2017, compute the unit sales volume to be used for preparing the sales budget for the year ending December 31, 2017. Place your answers in a columnar table similar to that in part (1) but with the following column heads. Round budgeted units to the nearest unit. 2016 Percentage 2017 Actual Increase Budgeted Units (Decrease) Units (rounded) 3. Prepare a sales budget for the year ending December 31, 2017