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Carla Vista Industries had sales in 2021 of $6,528,000 and gross profit of $1,056,000. Management is considering two alternative budget plans to increase its gross

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Carla Vista Industries had sales in 2021 of $6,528,000 and gross profit of $1,056,000. Management is considering two alternative budget plans to increase its gross profit in 2022. Plan A would increase the selling price per unit from $8.00 to $8.40. Sales volume would decrease by 120,000 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 by 124,800 units. At the end of 2021, Carla Vista has 40,000 units of inventory on hand. If Plan A is accepted, the 2022 ending inventory should be 36,000 units. If Plan B is accepted, the ending inventory should be equal to 64,000 units. Each unit produced will cost $150 in direct labor, $1.30 in direct materials, and $1.20 in variable overhead. The fuced overhead for 2022 should be $1,820,000. Prepare a sales budget for 2022 under each plan. (Round Unit selling price answers to 2 decimal places, (b) Prepare a production budget for 2022 under each plan. eTextbook and Media Compute the production cost per unit under each plan. (Round answers to 2 decimol places e.: 125.) Compute the gross profit under each plan

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