Forecast Sales 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: 8" x 10" Frame Unit Sales 12" x 16" Frame East 19,635 11,978 Central 4,635 3,136 West 3,977 2,369 Product and Area 8" x 10" Frame: East Central West Total Raphael Frame Company Sales Budget For the Year Ending December 31, 20Y8 Unit Unit Sales Volume Selling Price Total Sales 18,700 $14 $261,800 4,500 14 63,000 4,100 14 57,400 27,300 $382,200 12" x 16" Frame: East 11,300 $29 $327,700 Central 3,200 29 West Total Total revenue from sales 2,300 16,800 29 92,800 66,700 $487,200 $869,400 For the year ending December 31, 2019, unit sales are expected to follow the patterns established during the year ending December 31, 2018. The unit selling price for the 8" x 10" frame is expected to increase to $15 and the unit selling price for the 12 frame is expected to increase to $31, effective January 1, 2019. Required: 1. Compute the increase or decrease of actual unit sales for the year ended December 31, 20Y8, over budget. Use the minus sign to indicate a decrease in amount and percent. Round percents to the nearest whole percent. Unit Sales, Increase (Decrease) Year Ended 20Y8 Actual Over Budget Budget Actual Sales Amount Percent 8" x 10" Frame: East
Forecast Sales 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: 8" x 10" Frame Unit Sales 12" x 16" Frame East 19,635 11,978 Central 4,635 3,136 West 3,977 2,369 Product and Area 8" x 10" Frame: East Central West Total Raphael Frame Company Sales Budget For the Year Ending December 31, 20Y8 Unit Unit Sales Volume Selling Price Total Sales 18,700 $14 $261,800 4,500 14 63,000 4,100 14 57,400 27,300 $382,200 12" x 16" Frame: East 11,300 $29 $327,700 Central 3,200 29 West Total Total revenue from sales 2,300 16,800 29 92,800 66,700 $487,200 $869,400 For the year ending December 31, 2019, unit sales are expected to follow the patterns established during the year ending December 31, 2018. The unit selling price for the 8" x 10" frame is expected to increase to $15 and the unit selling price for the 12 frame is expected to increase to $31, effective January 1, 2019. Required: 1. Compute the increase or decrease of actual unit sales for the year ended December 31, 20Y8, over budget. Use the minus sign to indicate a decrease in amount and percent. Round percents to the nearest whole percent. Unit Sales, Increase (Decrease) Year Ended 20Y8 Actual Over Budget Budget Actual Sales Amount Percent 8" x 10" Frame: East
Chapter1: Financial Statements And Business Decisions
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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.
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Transcribed Image Text:Forecast Sales 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:
8" x 10"
Unit Sales
12" x 16"
Frame
Frame
East
19,635
11,978
Central
4,635
3,136
West
3,977
2,369
Product and Area
8" x 10" Frame:
East
Central
West
Total
Raphael Frame Company
Sales Budget
For the Year Ending December 31, 20Y8
Unit Sales
Volume
Unit
Selling
Price
Total
Sales
18,700
$14
$261,800
4,500
14
63,000
4,100
14
57,400
27,300
$382,200
12" x 16" Frame:
East
Central
11,300
3,200
$29
$327,700
29
West
Total
Total revenue from sales
2,300
16,800
29
92,800
66,700
$487,200
$869,400
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" x 10" frame is expected to increase to $15 and the unit selling price for the 12"
frame is expected to increase to $31, effective January 1, 2019.
Required:
1. Compute the increase or decrease of actual unit sales for the year ended December 31, 20Y8, over budget. Use the minus sign to indicate a decrease in amount and percent. Round percents to the nearest whole percent.
Unit Sales,
Increase (Decrease)
Year Ended 20Y8
Actual Over Budget
Budget
Actual Sales
Amount
Percent
8" x 10" Frame:
East
%
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