Question
Bramble Industries had sales in 2021 of $ 5,548,800 and gross profit of $ 897,600. Management is considering two alternative budget plans to increase its
Bramble Industries had sales in 2021 of $ 5,548,800 and gross profit of $ 897,600. Management is considering two alternative budget plans to increase its gross profit in 2022. Plan A would increase the unit selling price from $ 8.00 to $ 8.40. Sales volume would decrease by 102,000 units from its 2021 level. Plan B would decrease the unit selling price by $ 0.50. The marketing department expects that the sales volume would increase by 106,080 units. At the end of 2021, Bramble has 32,640 units of inventory on hand. If Plan A is accepted, the 2022 ending inventory should be 28,560 units. If Plan B is accepted, the ending inventory should be equal to 48,960 units. Each unit produced will cost $ 1.5 indirect labor, $ 1.3 indirect materials, and $ 1.2 in variable overhead. The fixed overhead for 2022 should be $ 1,546,320.
Question 3 of 10 -/2 Prepare a sales budget for 2022 under each plan. (Round Unit selling price answers to 2 decimal places, eg. 52.70.) BRAMBLE INDUSTRIES Sales Budget Plan A Plan B $ e Textbook and Media Prepare a production budget for 2022 under each plan. BRAMBLE INDUSTRIES Production Budget Plan A Plan B Question 3 of 10 > -12 E e Textbook and Media 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 Compute the gross profit under each plan. (Round answers to 0 decimal places, e.g. 125.) Plan A Plan B Gross Profit $ $ Which plan should be accepted? should be accepted. e Textbook and Media Save for Later Attempts: 0 of 3 used SubmitStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started