Question Content Area

Forecast Sales Volume and Sales Budget

For $20$Y$6,$ Raphael Frame Company prepared the sales budget that follows.

At the end of December $20$Y$6,$ the following unit sales data were reported for the year:

Unit Sales

$8"\backslash$times $10"$

Frame $12"\backslash$times $16"$

Frame

East $33,17615,960$

Central $8,7725,194$

West $7,7604,223$

Raphael Frame Company

Sales Budget

For the Year Ending December $31,20$Y$6$

Product and Area

Unit Sales

Volume Unit Selling

Price

Total Sales

$8"\backslash$times $10"$ Frame:

East $31,900$ $$23$ $$733,700$

Central $8,60023197,800$

West $8,00023184,000$

Total $48,500$ $$1,115,500$

$12"\backslash$times $16"$ Frame:

East $15,200$ $$33$ $$501,600$

Central $5,30033174,900$

West $4,10033135,300$

Total $24,600$ $$811,800$

Total revenue from sales $$1,927,300$

For the year ending December $31,20$Y$7,$ unit sales are expected to follow the patterns established during the year ending December $31,20$Y$6.$ The unit selling price for the $8"\backslash$times $10"$ frame is expected to increase to $$24$ and the unit selling price for the $12"\backslash$times $16"$ frame is expected to increase to $$35,$ effective January $1,20$Y$7.$

Required:

Question Content Area

$1.$ Compute the increase or decrease of actual unit sales for the year ended December $31,20$Y$6,$ 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 $20$Y$6$ Increase $($Decrease$)$

Actual Over Budget

Budget Actual Sales Amount Percent

$8"\backslash$times $10"$ Frame:

East fill in the blank f$0$ac$06$fe$3$feefa$1\_1$

$31,900$

fill in the blank f$0$ac$06$fe$3$feefa$1\_2$

$33,176$

fill in the blank f$0$ac$06$fe$3$feefa$1\_3$

$1,276$

fill in the blank f$0$ac$06$fe$3$feefa$1\_4$

$4$

$\%$

Central fill in the blank f$0$ac$06$fe$3$feefa$1\_5$

$8,600$

fill in the blank f$0$ac$06$fe$3$feefa$1\_6$

$8,772$

fill in the blank f$0$ac$06$fe$3$feefa$1\_7$

$172$

fill in the blank f$0$ac$06$fe$3$feefa$1\_8$

$2$

$\%$

West fill in the blank f$0$ac$06$fe$3$feefa$1\_9$

$8,000$

fill in the blank f$0$ac$06$fe$3$feefa$1\_10$

$7,760$

fill in the blank f$0$ac$06$fe$3$feefa$1\_11$

$-240$

fill in the blank f$0$ac$06$fe$3$feefa$1\_12$

$-3$

$\%$

$12"\backslash$times $16"$ Frame:

East fill in the blank f$0$ac$06$fe$3$feefa$1\_13$

$15,200$

fill in the blank f$0$ac$06$fe$3$feefa$1\_14$

$15,960$

fill in the blank f$0$ac$06$fe$3$feefa$1\_15$

$760$

fill in the blank f$0$ac$06$fe$3$feefa$1\_16$

$5$

$\%$

Central fill in the blank f$0$ac$06$fe$3$feefa$1\_17$

$5,300$

fill in the blank f$0$ac$06$fe$3$feefa$1\_18$

$5,194$

fill in the blank f$0$ac$06$fe$3$feefa$1\_19$

$-106$

fill in the blank f$0$ac$06$fe$3$feefa$1\_20$

$-2$

$\%$

West fill in the blank f$0$ac$06$fe$3$feefa$1\_21$

$4,100$

fill in the blank f$0$ac$06$fe$3$feefa$1\_22$

$4,223$

fill in the blank f$0$ac$06$fe$3$feefa$1\_23$

$123$

fill in the blank f$0$ac$06$fe$3$feefa$1\_24$

$3$

$\%$

$2.$ Assuming that the increase or decrease in actual sales to budget indicated in part $(1)$ is to continue in $20$Y$7,$ compute the unit sales volume to be used for preparing the sales budget for the year ending December $31,20$Y$7.$ Use the minus sign to indicate a decrease in percent. Round budgeted units to the nearest whole unit.

$20$Y$6$

Actual

Units Percentage

Increase

$($Decrease$)20$Y$7$

Budgeted

Units $($rounded$)$

$8"\backslash$times $10"$ Frame:

East fill in the blank f$0$ac$06$fe$3$feefa$1\_25$

fill in the blank f$0$ac$06$fe$3$feefa$1\_26$

$4$

$\%$ fill in the blank f$0$ac$06$fe$3$feefa$1\_27$

Central fill in the blank f$0$ac$06$fe$3$feefa$1\_28$

fill in the blank f$0$ac$06$fe$3$feefa$1\_29$

$2$

$\%$ fill in the blank f$0$ac$06$fe$3$feefa$1\_30$

West fill in the blank f$0$ac$06$fe$3$feefa$1\_31$

fill in the blank f$0$ac$06$fe$3$feefa$1\_32$

$-3$

$\%$ fill in the blank f$0$ac$06$fe$3$feefa$1\_33$

$12"\backslash$times $16"$ Frame:

East fill in the blank f$0$ac$06$fe$3$feefa$1\_34$

fill in the blank f$0$ac$06$fe$3$feefa$1\_35$

$5$

$\%$ fill in the blank f$0$ac$06$fe$3$feefa$1\_36$

Central fill in the blank f$0$ac$06$fe$3$feefa$1\_37$

fill in the blank f$0$ac$06$fe$3$feefa$1\_38$

$-2$

$\%$ fill in the blank f$0$ac$06$fe$3$feefa$1\_39$

West fill in the blank f$0$ac$06$fe$3$feefa$1\_40$

fill in the blank f$0$ac$06$fe$3$feefa$1\_41$

$3$

$\%$ fill in the blank f$0$ac$06$fe$3$feefa$1\_42$

Question Content Area

$3.$ Prepare a sales budget for the year ending December $31,20$Y$7.$

Raphael Frame Company

Sales Budget

For the Year Ending December $31,20$Y$7$

Product and Area Unit Sales Volume Unit Selling Price Total Sales

$8"\backslash$times $10"$ Frame:

East fill in the blank aeeeed$0$edffc$055\_1$

$fill in the blank aeeeed$0$edffc$055\_2$

$24$

$fill in the blank aeeeed$0$edffc$055\_3$

Central fill in the blank aeeeed$0$edffc$055\_4$

fill in the blank aeeeed$0$edffc$055\_5$

$24$

fill in the blank aeeeed$0$edffc$055\_6$

West fill in the blank aeeeed$0$edffc$055\_7$

fill in the blank aeeeed$0$edffc$055\_8$

$24$

fill in the blank aeeeed$0$edffc$055\_9$

Total fill in the blank aeeeed$0$edffc$055\_10$

$fill in the blank aeeeed$0$edffc$055\_11$

$12"\backslash$times $16"$ Frame:

East fill in the blank aeeeed$0$edffc$055\_12$

$fill in the blank aeeeed$0$edffc$055\_13$

$35$

$fill in the blank aeeeed$0$edffc$055\_14$

Central fill in the blank aeeeed$0$edffc$055\_15$

fill in the blank aeeeed$0$edffc$055\_16$

$35$

fill in the blank aeeeed$0$edffc$055\_17$

West fill in the blank aeeeed$0$edffc$055\_18$

fill in the blank aeeeed$0$edffc$055\_19$

$35$

f