Required:1. Compute the increase or decrease of actual unit sales for the year ended December 31, 20Y6, over budget.Enter any decreases beginning with a minus (-) sign.Unit Sales,Increase (Decrease)Actual Over BudgetYear Ended 20Y6BudgetActual SalesAmountPercent8" x 10 Frame:EastCentralWest12" x 16" Frame:EastCentralWest2. 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.Enter any decreases beginning with a minus (-) sign. Round budgeted units to the nearest whole unit.20Υ6Percentage20Υ7ActualIncreaseBudgetedUnits(Decrease)Units (rounded)8" x 10" Frame:EastCentralWest12" x 16" Frame:EastCentralWest3. Prepare a sales budget for the year ending December 31, 20Y7.Raphael Frame CompanySales BudgetFor the Year Ending December 31, 20Y7Product and AreaUnit Sales Volume Unit Selling Price Total Sales8" x 10" Frame:EastCentralWestTotal12" x 16" Frame:EastCentralWestTotalTotal revenue from sales For 20Y6, Raphael Frame Company prepared the sales budget that follows.At the end of December 20Y6, the following unit sales data were reported for the year:Unit Sales8" x 10"12" x 16"FrameFrameEast8,7553,686Central6,5103,090West12,3485,616Raphael Frame CompanySales BudgetFor the Year Ending December 31, 20Y6UnitUnit SalesSellingProduct and AreaVolumePriceTotal Sales8" x 10" Frame:East8,500$16$136,000Central6,2001699,200West12,60016201,600Total27,300$436,80012" x 16" Frame:East3,800$30$114,000Central3,0003090,000West5,40030162,000Total12,200$366,000Total revenue from sales$802,800For the year ending December 31, 20Y7, unit sales are expected to follovw the patterns established during the year ending December 31, 20Y6. The unit selling price for the 8" x 10" frame is expected to increase to $17, and the unit selling price for the 12" x 16" frame is expected to increase to $32, effectiveJanuary 1, 20Y7.

Solution 1 Unit Sales,Year Ended 20Y6 Increase (Decrease)Actual Over Budget…

8"x 10" 12" x 16" Frame Frame 8.755 3.686 ral 6.510 3.090 12.348 5.616 Raphael Frame Company Sales Budget For the Year Ending December 31, 20Y6 Unit Unit Sales Selling luct and Area Volume Price Total Sales 10 Frame ast 8.500 $16 $136.000 entral 99.200 6.200 16 est 12.600 16 201.600 Total 27,300 $436.800 x 16" Frame: ast 3.800 $30 $114.000 entral 3,000 30 90,000 est 5,400 30 162.000 Total 12.200 $366.000 Irevenue from sales $802.800 he 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"x 10" frame is expected to increase to S17, and the unit selling price for the 12" x 16" frame is expected to increase to $32, effe ary 1, 20Y7.

8"x 10" 12" x 16" Frame Frame 8.755 3.686 ral 6.510 3.090 12.348 5.616 Raphael Frame Company Sales Budget For the Year Ending December 31, 20Y6 Unit Unit Sales Selling luct and Area Volume Price Total Sales 10 Frame ast 8.500 $16 $136.000 entral 99.200 6.200 16 est 12.600 16 201.600 Total 27,300 $436.800 x 16" Frame: ast 3.800 $30 $114.000 entral 3,000 30 90,000 est 5,400 30 162.000 Total 12.200 $366.000 Irevenue from sales $802.800 he 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"x 10" frame is expected to increase to S17, and the unit selling price for the 12" x 16" frame is expected to increase to $32, effe ary 1, 20Y7.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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