Unit Sales 8" × 10" Frame 12" × 16" Frame East 8,755 3,686 Central 6,510 3,090 West 12,348 5,616 Raphael Frame Company Sales Budget
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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 Sales | ||||
| 8" × 10" Frame |
12" × 16" Frame |
|||
| East | 8,755 | 3,686 | ||
| Central | 6,510 | 3,090 | ||
| West | 12,348 | 5,616 |
| Raphael Frame Company Sales Budget For the Year Ending December 31, 20Y6 |
||||||
| Product and Area | Unit Sales Volume |
Unit Selling Price |
Total Sales | |||
| 8" × 10" Frame: | ||||||
| East | 8,500 | $16 | $136,000 | |||
| Central | 6,200 | 16 | 99,200 | |||
| West | 12,600 | 16 | 201,600 | |||
| Total | 27,300 | $436,800 | ||||
| 12" × 16" Frame: | ||||||
| East | 3,800 | $30 | $114,000 | |||
| Central | 3,000 | 30 | 90,000 | |||
| West | 5,400 | 30 | 162,000 | |||
| Total | 12,200 | $366,000 | ||||
| Total revenue from sales | $802,800 |
For 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" × 10" frame is expected to increase to $17 and the unit selling price for the 12" × 16" frame is expected to increase to $32, effective January 1, 20Y7.
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, Year Ended 20Y6 |
Increase (Decrease) Actual Over Budget |
||||
| Budget | Actual Sales | Amount | Percent | ||
| 8" × 10" Frame: | |||||
| East | fill in the blank dec096f49062fa3_1 | fill in the blank dec096f49062fa3_2 | fill in the blank dec096f49062fa3_3 | fill in the blank dec096f49062fa3_4% | |
| Central | fill in the blank dec096f49062fa3_5 | fill in the blank dec096f49062fa3_6 | fill in the blank dec096f49062fa3_7 | fill in the blank dec096f49062fa3_8% | |
| West | fill in the blank dec096f49062fa3_9 | fill in the blank dec096f49062fa3_10 | fill in the blank dec096f49062fa3_11 | fill in the blank dec096f49062fa3_12% | |
| 12" × 16" Frame: | |||||
| East | fill in the blank dec096f49062fa3_13 | fill in the blank dec096f49062fa3_14 | fill in the blank dec096f49062fa3_15 | fill in the blank dec096f49062fa3_16% | |
| Central | fill in the blank dec096f49062fa3_17 | fill in the blank dec096f49062fa3_18 | fill in the blank dec096f49062fa3_19 | fill in the blank dec096f49062fa3_20% | |
| West | fill in the blank dec096f49062fa3_21 | fill in the blank dec096f49062fa3_22 | fill in the blank dec096f49062fa3_23 | fill in the blank dec096f49062fa3_24% |
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.
Enter any decreases beginning with a minus (-) sign. Round budgeted units to the nearest whole unit.
| 20Y6 Actual Units |
Percentage Increase (Decrease) |
20Y7 Budgeted Units (rounded) |
||
| 8" × 10" Frame: | ||||
| East | fill in the blank dec096f49062fa3_25 | fill in the blank dec096f49062fa3_26% | fill in the blank dec096f49062fa3_27 | |
| Central | fill in the blank dec096f49062fa3_28 | fill in the blank dec096f49062fa3_29% | fill in the blank dec096f49062fa3_30 | |
| West | fill in the blank dec096f49062fa3_31 | fill in the blank dec096f49062fa3_32% | fill in the blank dec096f49062fa3_33 | |
| 12" × 16" Frame: | ||||
| East | fill in the blank dec096f49062fa3_34 | fill in the blank dec096f49062fa3_35% | fill in the blank dec096f49062fa3_36 | |
| Central | fill in the blank dec096f49062fa3_37 | fill in the blank dec096f49062fa3_38% | fill in the blank dec096f49062fa3_39 | |
| West | fill in the blank dec096f49062fa3_40 | fill in the blank dec096f49062fa3_41% | fill in the blank dec096f49062fa3_42 |
3. Prepare a sales budget for the year ending December 31, 20Y7.
| Raphael Frame Company | |||
| Sales Budget | |||
| For the Year Ending December 31, 20Y7 | |||
| Product and Area | Unit Sales Volume | Unit Selling Price | Total Sales |
| 8" × 10" Frame: | |||
| East | fill in the blank ec7b19fe302a04b_1 | $fill in the blank ec7b19fe302a04b_2 | $fill in the blank ec7b19fe302a04b_3 |
| Central | fill in the blank ec7b19fe302a04b_4 | fill in the blank ec7b19fe302a04b_5 | fill in the blank ec7b19fe302a04b_6 |
| West | fill in the blank ec7b19fe302a04b_7 | fill in the blank ec7b19fe302a04b_8 | fill in the blank ec7b19fe302a04b_9 |
| Total | fill in the blank ec7b19fe302a04b_10 | $fill in the blank ec7b19fe302a04b_11 | |
| 12" × 16" Frame: | |||
| East | fill in the blank ec7b19fe302a04b_12 | $fill in the blank ec7b19fe302a04b_13 | $fill in the blank ec7b19fe302a04b_14 |
| Central | fill in the blank ec7b19fe302a04b_15 | fill in the blank ec7b19fe302a04b_16 | fill in the blank ec7b19fe302a04b_17 |
| West | fill in the blank ec7b19fe302a04b_18 | fill in the blank ec7b19fe302a04b_19 | fill in the blank ec7b19fe302a04b_20 |
| Total | fill in the blank ec7b19fe302a04b_21 | $fill in the blank ec7b19fe302a04b_22 | |
| Total revenue from sales | $fill in the blank ec7b19fe302a04b_23 |
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