Forecast Sales Volume and Sales Budget
Guardian Framing Inc. prepared the following sales budget for the current year:
Guardian Framing Inc.
Sales Budget
For the Year Ending December 31, 2014 |
| Product and Area |
Unit Sales
Volume |
Unit Selling
Price |
Total Sales |
| 8" Af— 10" Frame: |
 |
 |
 |
| East |
28,800 |
 |
$16 |
 |
$460,800 |
 |
| Central |
7,200 |
 |
16 |
 |
115,200 |
 |
| West |
6,600 |
 |
16 |
 |
105,600 |
 |
| Total |
42,600 |
 |
 |
$681,600 |
 |
| Â |
 |
 |
 |
 |
| 12" Af— 16" Frame: |
 |
 |
 |
| East |
12,100 |
 |
$31 |
 |
$375,100 |
 |
| Central |
3,000 |
 |
31 |
 |
93,000 |
 |
| West |
2,100 |
 |
31 |
 |
65,100 |
 |
| Total |
17,200 |
 |
 |
$533,200 |
 |
| Total revenue from sales |
 |
 |
$1,214,800 |
 |
At the end of December 2014, the following unit sales data were reported for the year:
| Â |
Unit Sales |
| Â |
8" Af— 10" |
12" Af— 16" |
| East |
30,528 |
 |
12,947 |
 |
| Central |
7,488 |
 |
2,940 |
 |
| West |
6,402 |
 |
2,163 |
 |
For the year ending December 31, 2015, unit sales are expected to follow the patterns established during the year ending December 31, 2014. The unit selling price for the 8" Af— 10" frame is expected to increase to $17 and the unit selling price for the 12" Af— 16" frame is expected to increase to $33, effective January 1, 2015.
Required:
Hint(s)
1. Compute the increase or decrease of actual unit sales for the year ended December 31, 2014, over budget. Use the minus sign to indicate a decrease in amount and percent. Round percents to the nearest whole percent.
| Â |
Unit Sales,
Year Ended 2014 |
Increase (Decrease)
Actual Over Budget |
| Â |
Budget |
Actual Sales |
Difference |
Percent |
| 8" Af— 10" Frame: |
 |
 |
 |
 |
| Â |
East |
 |
 |
 |
% |
| Â |
Central |
 |
 |
 |
% |
| Â |
West |
 |
 |
 |
% |
| 12" Af— 16" Frame: |
 |
 |
 |
 |
| Â |
East |
 |
 |
 |
% |
| Â |
Central |
 |
 |
 |
% |
| Â |
West |
 |
 |
 |
% |
2. Assuming that the increase or decrease in actual sales to budget indicated in part (1) is to continue in 2015, compute the unit sales volume to be used for preparing the sales budget for the year ending December 31, 2015. Use the minus sign to indicate a decrease in percent. Round budgeted units to the nearest whole unit.
| Â |
2014
Actual
Units |
Percentage
Increase
(Decrease) |
2015
Budgeted
Units (rounded) |
| 8" Af— 10" Frame: |
| Â |
East |
 |
% |
 |
| Â |
Central |
 |
% |
 |
| Â |
West |
 |
% |
 |
| 12" Af— 16" Frame: |
| Â |
East |
 |
% |
 |
| Â |
Central |
 |
% |
 |
| Â |
West |
 |
% |
 |
Hint(s)
3.  Prepare a sales budget for the year ending December 31, 2015.
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For the Year Ending December 31, 2015
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Â
Answers
Status NEW
Posted 18 Aug 2017 04:08 PM
My Price 11.00
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