Forecast Sales Volume and Sales Budget Guardian Framing Inc. prepared the follow
ID: 2522806 • Letter: F
Question
Forecast Sales Volume and Sales Budget Guardian Framing Inc. prepared the following sales budget for 2016: Guardian Framing Inc. Sales Budget For the Year Ending December 31, 2016 Unit Unit Product and Area Sales Selling Total Sales Volume Price 8" x 10 Frame: East Central West Total 24,800 $14$347,200 86,800 9,800 513,800 6,200 14 5,700 14 36,700 12" x 16 Frame: East Central West Total 12,100 %29 %350.900 ,500 29 130,500 3,s00 29 101,500 $582,900 20,100 Total revenue from salcs $1,096,700 At the end of December 2016, the following unit sales data were reported for the year: Unit Sales 12" × 10 16 East 26,040 12,926 Central 6,386 4,410 West 5,529 3,570 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" x 10" frame is expected to increase to $15 and the unit selling price for the 12" x 16" frame is expected to increase to $31, effective January 1, 2017Explanation / Answer
Answer 1. Unit Sales Year Ended 2016 Increase (Decrease) Actual over Budget Budget Actual Unit Percent 8" X 10" Frame: East 24,800 26,040 1,240 5% Central 6,200 6,386 186 3% West 5,700 5,529 (171) -3% 12" X 16" Frame: East 12,100 12,826 726 6% Central 4,500 4,410 (90) -2% West 3,500 3,570 70 2% Answer 2. 2016 Actual Units Percentage Increase (Decrease) 2017 Budgeted Units (rounded) 8" X 10" Frame: East 26,040 5% 27,342 Central 6,386 3% 6,578 West 5,529 -3% 5,363 12" X 16" Frame: East 12,826 6% 13,596 Central 4,410 -2% 4,322 West 3,570 2% 3,641 Answer 3. Sales Budget For the Year Ending Dec 31, 2017 Unit Sales Volume Unit Selling Price Total Sales 8" X 10" Frame: East 27,342 15 410,130 Central 6,578 15 98,670 West 5,363 15 80,445 Total 39,283 589,245 12" X 16" Frame: East 13,596 31 421,476 Central 4,322 31 133,982 West 3,641 31 112,871 Total 21,559 668,329 Total Revenue from Sales 1,257,574