Solution $1$:

Computation of Increase or decrease of Actual unit sales:

orecast Sales Volume and Sales Budget or 20Y6, Raphael Frame Company prepared the sales budget that follows. t the end of December 20Y6, the following unit sales data were reported for the year: Unit Sales East Central West Frame 23,484 5,555 4,800 12" x 16" Frame 11,960 4,802 4,120 Raphael Frame Company Sales Budget For the Year Ending December 31, 20Y6 Product and Area 8" x 10" Frame: East Central West Total 12" x 16" Frame: East Central West Total Total revenue from sales Unit Sales Volume 22,800 5,500 5,000 33,300 11,500 4,900 4,000 20,400 unit Selling Price $19 $20 Total sales $433,200 104,500 95,000 $632,700 $230,000 98,000 80,000 $408,000 or the year ending December 31, 20Y7, unit sales are expected to follow the patterns established during the year ending December 31, 20Y6. The unit selling price for the 8" uired: x 10" frame is expected to increase to $20 and the unit selling price for the 12" x 16" frame is expected to increase to $22, effective January 1, 20Y7. 1. 8" Compute the increase or decrease of actual unit sales for the year ended December 31, 20Y6, 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 20Y6 Increase (Decrease) Actual Over Budget x 10" Frame: East Central West Budget 22,800 Actual Sales 23,484 Amount Percent 12" x 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 20Y7, compute the unit sales volume to be used for preparing the sales budget for the year ending December 31, 20Y7. use the minus sign to indicate a decrease in percent. Round budgeted units to the nearest whole unit. ec r 01 nkil 20Y6 Actual Units 8" x 10" Frame: East Central West Percentage Increase (Decrease) 20Y7 Budgeted Units (rounded) 12" x 16" Frame: