Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Complete all parts of A, B, C, and D make sure to fill out all the columns please do not forget to part C1 Hill

image text in transcribed

image text in transcribedimage text in transcribed

image text in transcribedimage text in transcribed

Complete all parts of A, B, C, and D

make sure to fill out all the columns please

do not forget to part C1

Hill Industries had sales in 2021 of $6,800,000 and gross profit of $1,100,000. 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 125,000 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 130,000 units. At the end of 2021, Hill has 40,000 units of inventory on hand. If Plan A is accepted, the 2022 ending inventory should be 35,000 units. If Plan B is accepted, the ending inventory should be equal to 60,000 units. Each unit produced will cost $1.5 in direct labor, $1.3 in direct materials, and $1.2 in variable overhead. The fixed overhead for 2022 should be $1,895,000. (a) Prepare a sales budget for 2022 under each plan. (Round Unit selling price answers to 2 decimal places, e.g. 52.70.) Prepare a sales budget for 2022 under each plan. (Round Unit selling price answers to 2 decimal places, e.g. 52.70. Prepare a production budget for 2022 under each plan. Compute the production cost per unit under each plan. (Round answers to 2 decimal places, e.g. 1.25.) Compute the gross profit under each plan. (Round answers to 0 decimal places, e.g. 125.) Which plan should be accepted

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Security And Loss Prevention An Introduction

Authors: Philip Purpura CPP Florence Darlington Technical College

7th Edition

0128117958, 9780128117958

More Books

Students also viewed these Accounting questions