Forecast sales volume and sales budget

Reference no: EM131038933

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, 2016
Product and Area	Unit Sales Volume	Unit Selling Price	Total 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.

Reference no: EM131038933

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