For the current year, Raphael Frame Company prepared the sales budget shown at the top of the next page. At the end of December 2014, the following unit sales data were reported for the year:

For the year ending December 31, 2015, unit sales are expected to follow the patterns established during the year ending December 31, 2014. 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, 2015.

Instructions
1. Compute the increase or decrease of actual unit sales for the year ended December 31, 2014, over budget. Place your answers in a columnar table with the following format:

2. Assuming that the increase or decrease in actual sales to budget indicated in part (1) is to continue in 2015, compute the unit sales volume to be used for preparing the sales budget for the year ending December 31, 2015. Place your answers in a columnar table similar to that in part (1) above but with the following column heads. Round budgeted units to the nearest unit.

3. Prepare a sales budget for the year ending December 31,2015.

Transcribed Image Text:

Unit Sales 8" East Central West 10" Frame 8755 6510 12348 12" x 16" Frame 3,686 3,090 5,616 Raphael Frame Company Sales Budget For the Year Ending December 31, 2014 Unit Sales Volume Unit Selling Price Total Sales Product and Area 8x 10 Frame: 8,500 6,200 12600 27,300 $136,000 99200 201600 $436,800 Central 16 16 12"X 16" Frame: 3,800 зао 5,400 12,200 $30 30 30 114000 90,000 162,000 366,000 802 800 2014 Actual Units 2015 Budgeted Units (rounded) Percentage Increase (Decrease)U