Chapter 22, Problem 22.1BPR

Forecast sales volume and sales budget

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

Sentinel Systems Inc. Sales Budget For the Year Ending December 31, 20 Y8
	Unit Sales	Unit Selling	Total
Product and Area	Volume	Price	Sales
Home Alert System:
United States	1,700	$200	$ 340,000
Europe	580	200	116,000
Asia	450	200	90,000
Total	2,730		$ 546,000
Business Alert System:
United States	980	$750	$ 735,000
Europe	350	750	262,500
Asia	240	750	180,000
Total	1,570		$1,177,500
Total revenue from sales			$1,723,500

  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 December 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 decreased to $820, 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:

	Unit Sales, Year Ended 20Y8	Increase (Decrease) Actual Over Budget
	Budget Actual Sales	Amount Percent
Home Alert System:
United States
Europe
Asia
Business Alert System:
United States
Europe
Asia

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 unit.

20Y8 Actual Units

Percentage Increase (Decrease)

20Y9 Budgeted Units (rounded)

1. 3. Prepare a sales budget for the year ending December 31, 20Y9.