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# Sales budget: Compare actual with the budgeted figures

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Renoir Frame Company prepared the following sales budget for the current year:

Renoir Frame Company
Sales Budget
For the year ending Dec. 31, 2003

Product and Area Unit Sales Unit Selling Total Sales
Volume Price
8"X10" Frame:
East.................. \$25,000 \$8.00 \$200,000
Central.................. 32,000 8.00 256,000
West.....................12,000 8.00 96,000
Total..................69,000 \$552,000

12"X16" Frame
East.................. \$20,000 \$15.00 \$300,000
Central.................. 25,000 15.00 375,000
West.....................10,000 15.00 150,000
Total..................55,000 \$825,000
Total revenue form sales...... ............ 1,377,000

At the end of Dec. 2003, the following units sales data were reported for the year:

Unit Sales
8'X10" Frames 12"X16" Frame
East 26,125 20,600
Central 32,640 26,375
West 11,448 9,500

For the year ending Dec. 31, 2004 unit sales are expected to follow the patterns established during the year ending Dec. 31, 2003. The unit selling price for the 8"X10" frame is expected to change to \$9, and the unit selling price for the 12"X16" frame is expected to decline to \$13, effective Jan. 1, 2004.

Instructions:

1. Compute the increase or decrease of actual unit sales for the year ended Dec. 31, 2003, over budget. Place answers in a columnar table with the following format: (see attachment for format)

2. Assuming that the trend of sales indicated in (1) is to continue in 2004, compute the unit sales volume to be used for preparing the sales budget for the year ending Dec.31, 2004. Place your answers in a columnar table with the following format. ((see attachment for format) Round budgeted units to the nearest thousand.

3. Prepare a sales budget for the year ending Dec. 31, 2004