1096480 is not correct answer. Please review again. Hill Industries had sales in 2019 of $6,960,000 and gross profit of $1,126,000. 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 109,000 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 70,000 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 $1,986,944.

Hill Industries had sales in 2019 of $6,960,000 and gross profit of $1,126,000. 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 109,000 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 70,000 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 $1,986,944. 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. ) Your answer is correct. Prepare a production budget for 2020 under each plan. HILL INDUSTRIES Production Budget For the Year Ending December 31, 2020 eTextbook and Media Your answer is correct. Compute the production cost per unit under each plan. (Round answers to 2 decimal places, e.g. 1.25.) Compute the production cost per unit under each plan. (Round answers to 2 decimal places, e.g. 1.25.) eTextbook and Media - Your answer is partially correct. Compute the gross profit under each plan. Anonymous answered this 467 answers Was this answer helpful? Up next in your courses Access expert-created study materials to guide you through key concepts. Managerial Accounting