Chapter 21, Problem 21.1APR

Forecast sates volume and sales budget

For 20Y8, Raphael Frame Company prepared the sales budget that follows.

At the end of December 20Y8, 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

For the year ending December 31, 20Y9, unit sales are expected to Follow the patterns established during the year ending December 31, 20Y8. The unit selling price for the 8" × 10" the 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, 20Y9.

Instructions

1. 1. Compute the increase or decrease of actual unit sales for the year ended December 31,. 20Y8, Over budget. Place your answers in a columnar table with the following format:

1. 2. Assuming that the increase or decrease in actual sales to budget indicated in part (1) is to continue in 20Y9, compute the unit sales volume to lie used for preparing the sales budget for the year ending December 31, 20Y9. Place your answers in a columnar table similar to that in part (1) but with the following column heads. Round budgeted units to the nearest.

20Y8	Percentage	20Y9
Actual	Increase	Budgeted
Units	(Decrease)	Units (rounded)

1. 3. Prepare a sales budget for the year ending December 51. 20Y9.