0.5/1 Question 14 View Policies Show Attempt History Current Attempt in Progress Hill Industries had sales in 2019 of $7,120,000 and gross profit of $1,274,000. Management is considering two alternative budget plans to increase its gross profit in 2020. Plan A would increase the selling price per unit from $8.00 to $8.40. Sales volume would decrease by 10% from its 2019 level. Plan B would decrease the selling price per unit by $0.50. The marketing department expects that the sales volume would increase by 104,000 units. At the end of 2019, Hill has 46,000 units of inventory on hand. If Plan A is accepted, the 2020 ending inventory should be equal to 5% of the 2020 sales. If Plan B is accepted, the ending inventory should be equal to 67,800 units. Each unit produced will cost $1.80 in direct labor, $1.40 in direct materials, and $1.20 in variable overhead. The fixed overhead for 2020 should be $1,939,922 Your answer is correct. Prepare a sales budget for 2020 under each plan (Round Unit selling price answers to 2 decimal places, e.g. 52.70.) HILL INDUSTRIES Sales Budget For the Year Ending December 31, 2020 Plan A Plan B Expected Unit Sales 801000 994000 Unit Selling Price 8.40 $ 7.50 Total Sales $ 6728400 $ 7455000 (b) Your Answer Correct Answer Your answer is correct Prepare a production budget for 2020 under each plan. HILL INDUSTRIES Production Budget For the Year Ending December 31, 2020 Plan A Plan B Expected Unit Sales 801000 994000 Add : Desired Ending Finished Goods Units 40050 67000 Total Required Units 841050 1061000 + Less : Beginning Finished Goods Units 46000 46000 i Required Production Units 795050 1015000 (c1) Compute the production cost per unit under each plan. (Round answers to 2 decimal places, e.g. 1.25.) Plan A Plan B Production cost per unit $ $ e Textbook and Media