Question

Guardian Framing Inc. prepared the following sales budget forthe current year:

GuardianFraming Inc. Sales Budget For the Year Ending December 31, 2014
Product andArea		UnitSales Volume		UnitSelling Price		TotalSales
8" × 10" Frame:
East		31,100		$17		$528,700
Central		7,500		17		127,500
West		6,800		17		115,600
Total		45,400				$771,800
12" × 16" Frame:
East		13,600		$18		$244,800
Central		5,400		18		97,200
West		4,400		18		79,200
Total		23,400				$421,200
Total revenue fromsales						$1,193,000

At the end of December 2014, the following unit sales data werereported for the year:

	UnitSales
	8" ×10"		12" ×16"
East	32,655		14,416
Central	7,725		5,292
West	6,528		4,576

For the year ending December 31, 2015, unit sales are expectedto follow the patterns established during the year ending December31, 2014. The unit selling price for the 8" × 10" frame is expectedto increase to $18 and the unit selling price for the 12" × 16"frame is expected to increase to $20, effective January 1,2015.

Required:

1. Compute the increase or decrease of actualunit sales for the year ended December 31, 2014, over budget. Usethe minus sign to indicate a decrease in amount and percent. Roundpercents to the nearest whole percent.

		UnitSales, Year Ended 2014				Increase(Decrease) Actual Over Budget
		Budget		ActualSales		Difference	Percent
8" × 10" Frame:
	East						%
	Central						%
	West						%
12" × 16" Frame:
	East						%
	Central						%
	West						%

2. Assuming that the increase or decrease inactual sales to budget indicated in part (1) is to continue in2015, compute the unit sales volume to be used for preparing thesales budget for the year ending December 31, 2015. Use the minussign to indicate a decrease in percent. Round budgeted units to thenearest whole unit.

		2014 Actual Units		Percentage Increase (Decrease)	2015 Budgeted Units (rounded)
8" × 10" Frame:
	East			%
	Central			%
	West			%
12" × 16" Frame:
	East			%
	Central			%
	West			%

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3. Prepare a sales budget for theyear ending December 31, 2015.

Guardian Framing Inc.
Sales Budget
For the Year Ending December 31, 2015
Product and Area		Unit Sales Volume		Unit Selling Price		Total Sales
8" × 10" Frame:
East				$		$
Central
West
Total						$
12" × 16" Frame:
East				$		$
Central
West
Total						$
Total revenue from sales						$