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Coronado industries had sales in 2021 of $7,280,000 and gross profit of $1,177,000. Management is considering two altemative budget plans to increase its gross profit

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Coronado industries had sales in 2021 of $7,280,000 and gross profit of $1,177,000. Management is considering two altemative budget plans to increase its gross profit in 2022 Plan A would increase the unitselling price from 58 to 58.4. Sales volume would decrease by 134,000 units from its 2021 level. Plan B would decrease the unit selling price by $1. The marketing department eqpects that the sales volume would increase by 139 , 000 units: At the end of 2021. Coronado has 43,000 units of itiventory on hand. If Plan A is accepted, the 2022 ending itwentory should be 37,000 units. If Plan B is accepted, the ending inventory should be equal to 64,000 units. Each unit produced will cost $1.50 in direct Iabor, $1.30 in direct materials, and $1.20 in variable overhead. The fwed overhead for 2022 should be $2.002,000. (a) - Youranower is partially cocrect. Prepare a sales bugget for 2022 under each plan (Round Unit selling price onswers to 2 decimal places es. 52.70 f Prepare a sales budget for 2022 under each plan. (Round Unit selling price answers to 2 decimal places, eg 52.70.) Prepare a production budget for 2022 under each pian

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