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forecast sales volume and sales budget raphael frame company prepared the following 1551747
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Forecast Sales Volume and Sales Budget
Raphael Frame Company prepared the following sales budget for 2016:
Raphael Frame Company
Sales Budget
For the Year Ending December 31, 2016Product and Area Unit Sales
VolumeUnit Selling
PriceTotal Sales 8″ × 10″ Frame: East 8,500 $16 $136,000 Central 6,200 16 99,200 West 12,600 16 201,600 Total 27,300 $436,800 12″ × 16″ Frame: East 3,800 $30 $114,000 Central 3,000 30 90,000 West 5,400 30 162,000 Total 12,200 $366,000 Total revenue from sales $802,800 At the end of December 2016, the following unit sales data were reported for the year:
Unit Sales 8″ × 10″ Frame 12″ × 16″ Frame East 8,755 3,686 Central 6,510 3,090 West 12,348 5,616 For the year ending December 31, 2017, unit sales are expected to follow the patterns established during the year ending December 31, 2016. 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, 2017.
Required:
- Compute the increase or decrease of actual unit sales for the year ended December 31, 2016, over budget.
- Assuming that the increase or decrease in actual sales to budget indicated in part (1) is to continue in 2017, compute the unit sales volume to be used for preparing the sales budget for the year ending December 31, 2017.
- Prepare a sales budget for the year ending December 31, 2017.
