+ ACC-240 TOPIC 06 ASSIGNMENT Question 2 of 4 7.5/15 View Policies Show Attempt History Current Attempt in Progress Wildhorse Industries had sales in 2021 of $6,500,000 and gross profit of $1,100,000. Management is corsidering two alternative budget plans to increase its gross prontin 2022. Plan A would increase the selling price per unit from $8.00 to $8.40. Sales volume would decrease by 125,000 units from its 2021 level. Plan B would decrease the selling price per unit by $0.50. The marketing department expects that the sales volume would increase try 130,000 units At the end of 2021. Wildhorse has 42,000 units of inventory on hand. If Plan A is accepted, the 2022 ending inventory should be 32,000 units. If Plan B is accepted, the ending inventory should be equal to 69.000 units. Each unit produced will cost $1.50 in direct labor, $1.30 in direct materials, and $1.20 in variable overhead. The fixed overhead for 2022 should be $1,896,000. (a) Your answer is correct. Prepare a sales budget for 2022 under each plan. (Round Unlt selling price answers to 2 decimal places, eg 52.70.) WILDHORSE INDUSTRIES Sales Budget For the Year Ending December 31, 2022 Plan A Plan B Expected Unit Sales 725,000 980,000 Unit Selling Price 8.40 $ 750 Total Sales v $ 49000 $ 7.350,000 e Textbook and Media Attempts: 1 of 5 used (b) + ACC-240 TOPIC 06 ASSIGNMENT Question 2 of 4 7.5/15 Attempts: 1 of 5 used (c1) * Your answer is incorrect. Compute the production cost per unit under each plan (Round answers to 2 decimal places, eg. 1.25.) Plan A Plan B Production cost per unit 5.89 e Textbook and Media Assistance Used Save for Later Attempts: 1 of 5 used Submit Answe (d) Compute the grass praht under each plan. Plan A Plan B Gruss Proint $ $ Which plan should he accepted? should be accepted. Textbook and Media Save for Lates Attempts: 0 of 5 used Submit A