Van Gogh Frame Company prepared the following sales budget for the current year:

At the end of December 2010, the following unit sales data were reported for the year:

For the year ending December 31, 2011, unit sales are expected to follow the patterns established during the year ending December 31, 2010. The unit selling price for the 8'' _ 10'' frame is expected to increase to $16, and the unit selling price for the 12'' _ 16'' frame is expected to increase to $26, effective January 1, 2011. Instructions1. Compute the increase or decrease of actual unit sales for the year ended December 31, 2010, over budget. Place your answers in a columnar table with the following format:

2. Assuming that the trend of sales indicated in part (1) is to continue in 2011, compute the unit sales volume to be used for preparing the sales budget for the year ending December 31, 2011. Place your answers in a columnar table similar to that in part (1) above but with the following column heads. Round budgeted units to the nearest unit.

3. Prepare a sales budget for the year ending December 31,2011.

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Van Gogh Frame Company Sales Budget For the Year Ending December 31, 2010 Unit Sales Volume Unit Selling Price Product and Area Total Sales 8" x 10" Frame: $ 420,000 360,000 $15.00 East 28,000 24,000 Central 15.00 West 32,500 84,500 15.00 487,500 $1,267,500 Total 12" x 16" Frame: 15,000 9,500 14,000 38,500 $ 375,000 237,500 350,000 East $25.00 Central West. 25.00 25.00 $ 962,500 Total Total revenue from sales $2,230,000