Concord Industries had sales in $2021$ of $$7,960,000$ and gross profit of $$1,287,000.$ Management is considering two alternative

budget plans to increase its gross profit in $2022.$

Plan A would increase the unit selling price from $$8$ to $$8\mathrm{.}4.$ Sales volume would decrease by $146,000$ units from its $2021$ level. Plan B

would decrease the unit selling price by $$1.$ The marketing department expects that the sales volume would increase by $152,000$ units.

At the end of $2021,$ Concord has $47,000$ units of inventory on hand. If Plan A is accepted, the $2022$ ending inventory should be $41,000$

units. If Plan B is accepted, the ending inventory should be equal to $70,000$ units. Each unit produced will cost $$1\mathrm{.}50$ in direct labor,

$$1\mathrm{.}30$ in direct materials, and $$1\mathrm{.}20$ in variable overhead. The fixed overhead for $2022$ should be $$2,023,200.$