Forecast Sales Volume and Sales BudgetSentinel Systems Inc. prepared the following sales budget for 20Y8:Sentinel Systems Inc.Sales BudgetFor the Year Ending December 31, 20Y8Product and AreaUnit SalesVolumeUnit SellingPriceTotal SalesHome Alert System:United States1,700$200$ 340,000Europe580200116,000Asia45020090,000Total 2,730$ 546,000Business Alert System:United States980$750$ 735,000Europe350750262,500Asia240750180,000Total 1,570$1,177,500Total revenue from sales$1,723,500At the end of December 20Y8, the following unit sales data were reported for the year:Unit SalesHome AlertSystemBusiness AlertSystemUnited States1,7341,078Europe609329Asia432252For the year ending December 31, 20Y9, unit sales are expected to follow the patterns established during the year ending December 31, 20Y8. The unit selling price for the Home Alert System is expected to increase to $250, and the unit selling price for the Business Alert System is expected to be increased to $820, effective January 1, 20Y9.Required:1. Compute the increase or decrease of actual unit sales for the year ended December 31, 20Y8, over budget.Enter any decreases beginning with a minus (-) sign. Unit Sales,Year Ended 20Y8Increase (Decrease) Actual Over BudgetBudgetActual SalesAmountPercentHome Alert System:United States %Europe %Asia %Business Alert System:United States %Europe %Asia %2. Assuming that the increase or decrease in actual sales to budget indicated in part (1) is to continue in 20Y9, compute the unit sales volume to be used for preparing the sales budget for the year ending December 31, 20Y9. Enter any decreases beginning with a minus (-) sign. Round budgeted units to the nearest whole unit.20Y8ActualUnitsPercentageIncrease(Decrease)20Y9BudgetedUnits (rounded)Home Alert System:United States%Europe%Asia%Business Alert System:United States%Europe%Asia%3. Prepare a sales budget for the year ending December 31, 20Y9.Sentinel Systems Inc.Sales BudgetFor the Year Ending December 31, 20Y9Product and AreaUnit Sales VolumeUnit Selling PriceTotal SalesHome Alert System: United States$$Europe Asia Total$Business Alert System: United States$$Europe Asia Total$Total revenue from sales$

Question
Asked Feb 1, 2020
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Forecast Sales Volume and Sales Budget
Sentinel Systems Inc. prepared the following sales budget for 20Y8:
Sentinel Systems Inc.
Sales Budget
For the Year Ending December 31, 20Y8
Product and Area
Unit Sales
Volume
Unit Selling
Price
Total Sales
Home Alert System:



United States
1,700

$200

$ 340,000

Europe
580

200

116,000

Asia
450

200

90,000

Total
2,730


$ 546,000


Business Alert System:



United States
980

$750

$ 735,000

Europe
350

750

262,500

Asia
240

750

180,000

Total
1,570


$1,177,500

Total revenue from sales


$1,723,500

At the end of December 20Y8, the following unit sales data were reported for the year:

Unit Sales

Home Alert
System
Business Alert
System
United States
1,734

1,078

Europe
609

329

Asia
432

252

For the year ending December 31, 20Y9, unit sales are expected to follow the patterns established during the year ending December 31, 20Y8. The unit selling price for the Home Alert System is expected to increase to $250, and the unit selling price for the Business Alert System is expected to be increased to $820, effective January 1, 20Y9.
Required:
1. Compute the increase or decrease of actual unit sales for the year ended December 31, 20Y8, over budget.
Enter any decreases beginning with a minus (-) sign.

Unit Sales,
Year Ended 20Y8
Increase (Decrease)
Actual Over Budget

Budget
Actual Sales
Amount
Percent
Home Alert System:

United States

 

%

Europe

 

%

Asia

 

%
Business Alert System:

United States

 

%

Europe

 

%

Asia

 

%
2. Assuming that the increase or decrease in actual sales to budget indicated in part (1) is to continue in 20Y9, compute the unit sales volume to be used for preparing the sales budget for the year ending December 31, 20Y9.
Enter any decreases beginning with a minus (-) sign. Round budgeted units to the nearest whole unit.

20Y8
Actual
Units
Percentage
Increase
(Decrease)
20Y9
Budgeted
Units (rounded)
Home Alert System:

United States

%


Europe

%


Asia

%

Business Alert System:

United States

%


Europe

%


Asia

%

3. Prepare a sales budget for the year ending December 31, 20Y9.
Sentinel Systems Inc.
Sales Budget
For the Year Ending December 31, 20Y9
Product and Area
Unit Sales Volume
Unit Selling Price
Total Sales
Home Alert System:

 

United States

$
$
Europe

 

Asia

 

Total


$
Business Alert System:

 

United States

$
$
Europe

 

Asia

 

Total


$
Total revenue from sales

$

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Expert Answer

Step 1

Sales refer to the selling of the goods & services to the customers in return for an amount of money.

The sales budget is prepared by the company which shows how to allocate the resources to different activities for achieving the budgeted sales.

Step 2

1)

The increase or decrease in actual units is calculated as follows:

Accounting homework question answer, step 2, image 1

Step 3

2)

Sales units for budgeted sales is calculated as follows:

Accounting homework question answer, step 3, image 1

...

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