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:

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" × 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, 20Y9.
Instructions
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:

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.

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

Transcribed Image Text:

Unit Sales 8""X 10" Frame 8,755 6,510 12,348 12"x16" Frame East Central West 3,686 3,090 5,616 Raphael Frame Company Sales Budget For the Year Ending December 31, 20Y8 Unit Sales Volume Unit Selling Price Total Sales Product and Area 8" x 10" Frame: 8,500 6,200 12,600 27,300 136,000 99,200 201,600 $436,800 12" x 16" Frame: 3,800 3,000 5,400 12,200 $30 30 30 114,000 90,000 162,000 $366,000 $802,800 Unit Sales, Year Ended 20Y8 Increase (Decrease) Actual Over Budget Amount Percent Budget Actual Sales 8" x 10" Frame: 12" x 16" Frame 20Y8 Actual Units Percentage Increase Decreasel 20Y9 Budgeted Units (rounded)