Question

Forecast Sales Volume and Sales Budget For 2018, Raphael Frame Company prepared the sales budget that follows. At the end of December 2048, the following unit sales data were reported for the year: Unit Sales 8" x 10" 12" X 16" Frame Frame East 25,853 9,048 Central 6,363 2,842 West 5,568 2,244 Raphael Frame Company Sales Budget For the Year Ending December 31, 2048 Unit Unit Sales Product and Area Selling Total Sales Volume Price 8" x 10" Frame: *** East 25.1 $23 $577.300 Central 5 133,400 $855,600 2,900 12" X 16" Frame: East 8,700 $287,100 Central 95,700 West 2,200 72,600 Total 13,800 $455,400 Total revenue from sales $1,311,000 For the year ending December 31, 2019, unit sales are expected to follow the patterns བ ལ་

Answer 1

Unit Sales year Ended 2018 Budget Actual sales Increase (Decrease) Actual over budget Amount percent 8" x 10" frame: East | 3 Central 25,000 6,300 5,800 25,853 6,363 5,568 753 63 -232 H West [12" X 16" frame: East 8.700 9,048 348 Central 2,900 2,842 -58 west 2,200 2, 244 44 of Calculation: Increase (Decrease) Amount = Actual Sales - Budgeted sales) 8" x 10" frame: East. Increase (Decrease) Amount = 25,853-25100 = 753 12" X 16" East: frame: Increase (Decrease) Amount = 9040 - 8,700 - 348

Actual over Percent & Budget Increase Decrease). Budgeted sales X 100 8" x 10" East frame: Perceat & (753 - 25,100) x 100 = 0.034 100 = 3% 12" x 16" frame: Percent East = (348 - 8,700)x100 = 0.04 x 100 = 4% 2048 Actual Percentage Increase - Decrease) 2019 Budgeted Units (rounded) 8" x 10" frame: وع 25,853 1 3 z Central West 6,363 5,568 26,629 6,427 5,345 12" X 16" frame: East 9,048 central 2,842 2,244 / 9,410 2,785 %) 2.289 west

Calculation: Percentage part (1) entage Increase (Decreases are Increase calculated above in Budgeted kaits = [Actual Units & {Actual units & Percent Increase (Decrease Budgeted units of East: 8" x 10" frame: = 25,0534 (25,853x 3%) = 25,853 +775.59 = 26,628.59 or 26,629 12" X 16" frame: East Budgeted units = 9,048 + (9,040x 4%) = 9,048 + 361.92 = 9,409.92 or 9.410 Central Budgeted units = {2,842 + {2,048 x -2%3) =(2,842 + (56.84) = 2,842 - 56.84 = 2,785.16 or 2,785

Total sates Units Sales Volume selling Price Raphael frame company Sales Budget for the year Ending December 31, 2049 I Unit Product and Area Units Sales Volume selling Price lote 8" x lo" frame: East 26,629 $24 $639,096 Central 6,427 $24 $154,248 West 5,345 $24 $128,280 Total 38,401 $921,624 12" X 16" frame: East 9,410 $35 $329,350 Central 2,785 $35 $ 97,475 West 2,289 $35 $80, 115 Total I 14,484 $506940 Total revenue from pales $1,428,564 Calculation: Total sales a Units East, 8" x 10" frame: sales volume X unit selling Price Total sales - 26,629 * $24 = $ 639,096 Unit sales volume is calculated above in part (2) Total Revenue from sales = Total sales of 8" x 10" frame & Total sales of 12" X 16" frame - $921,624 + $506,940 = $1,428,564