Maurice Tutor

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    Argosy University/ Phoniex University/
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    Oct-2001 - Nov-2016

Category > Accounting Posted 12 Jul 2017 My Price 13.00

Forecast Sales Volume and Sales Budget

  1. 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:

  2. Compute the increase or decrease of actual unit sales for the year ended December 31, 2016, over budget.
  3. 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.
  4. Prepare a sales budget for the year ending December 31, 2017.

Answers

Maurice Tutor
(5)
Status NEW Posted 12 Jul 2017 09:07 PM My Price 13.00

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