Chapter 21, Problem 21.1BPR

Forecast sales volume and sales budget

Sentinel systems Inc. prepared the following sales budget for 20Y8:

At the end of December 20Y8, the following unit sales data were reported for the year:

	Unit Sales
	Home Alert System	Business Alert System
United States	1,734	1,078
Europe	609	329
Asia	432	252

For the year ending December 31, 20Y9, unit sales are expected to follow the patterns established during the year ending October 31, 20Y8. The unit selling price for the Home: Alert System is expected to increase to $250, and the unit selling price for the Business Alert System is expected to be increased $820, effective January 1, 20Y9.

Instructions

1. 1. Compute the increase or decrease.ase of actual unit sales for the year ended October 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 be 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 unit.

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

1. 3. Prepare a sales budget for the year ending December 31, 201Y9