Question

Sentinel Systems Inc. prepared the following sales budget for the current year:


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 pat-terns established during the year ending December 31, 2014. 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, 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.


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  • CreatedJune 27, 2014
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