(C) Your answer is correct. 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 5.92 5.59 SHOW SOLUTION LINK TO TEXT VIDEO: SIMILAR PROBLEM Attempts: 1 of 10 used (d) Your answer is partially correct. Try again. Compute the gross profit under each plan. Plan A Plan B Gross Profit 2006800 1821300 Which plan should be accepted? Plan Av should be accepted. SHOW SOLUTION LINK TO TEXT VIDEO: SIMILAR PROBLEM Problem 13-3 (Part Level Submission) Marigold Industries had sales in 2016 of $7,200,000 and gross profit of $1,263,000. Management is considering two alternative budget plans to increase its gross profit in 2017. Plan A would increase the selling price per unit from $8.00 to $8.40. Sales volume would decrease by 10% from its 2016 level. Plan B would decrease the selling price per unit by $0.50. The marketing department expects that the sales volume would increase by 113,000 units. At the end of 2016, Marigold has 40,000 units of inventory on hand. If Plan A is accepted, the 2017 ending inventory should be equal to 5% of the 2017 sales. If Plan B is accepted, the ending inventory should be equal to 60,000 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 2017 should be $1,231,000. (a) Your answer is correct. Prepare a sales budget for 2017 under each plan. (Round Unit selling price answers to 2 decimal places, e.g. 52.70.) MARIGOLD INDUSTRIES Sales Budget For the Year Ending December 31, 2017 Plan A Plan B Expected unit sales 810000 1013000 Unit selling price 8.40 7.50 $ $ Total sales 6804000.00 7597500.00 SHOW SOLUTION LINK TO TEXT VIDEO: SIMILAR PROBLEM VIDEO: SIMILAR PROBLEM Attempts: 3 of 10 used (b) Your answer is correct. Prepare a production budget for 2017 under each plan. MARIGOLD INDUSTRIES Production Budget For the Year Ending December 31, 2017 Plan A Plan B Expected Unit Sales 810000 1013000 Add Desired Ending Finished Goods Units 40500 60000 Total Required Units 850500 1073000 Less Beginning Finished Goods Units 40000 40000 Required Production Units 810500 1033000 SHOW SOLUTION LINK TO TEXT VIDEO: SIMILAR PROBLEM Attempts: 2 of 10 used