Crane Industries had sales in 2021 of $5,616,800 and gross profit of $908,600. Management is considering two alternative budget plans to increase its gross profitin 2022. Plan A would increase the unit selling price from $8.00 to $8.40. Sales volume would decrease by 103,250 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 107,380 units. At the end of 2021, Crane has 33,040 units of inventory on hand. If Plan A is accepted, the 2022 ending inventory should be 28,910 units. If Plan B is accepted, the ending inventory should be equal to 49,560 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 $1,565,270. (a) Q Your Answer Correct Answer (Used) Your answer is partially correct. Prepare a sales budget for 2022 under each plan. (Round Unit selling price answers to 2 decimal places, es. 52.70.) CRANE INDUSTRIES Sales Budget For the Quarter Ending December 31, 2022 Plan A Plan B 598,850 809,480 Expected Unit Sales 8.40 7.50 Unit Selling Price $ 5,030,340 $ Total Sales 6,071,100 (b) Prepare a production budget for 2022 under each plan. CRANE INDUSTRIES Production Budget Plan A Plan B c > K Direct Materials per Unit Total Materials Required Direct Materials Purchases Desired Ending Direct Materials Beginning Finished Goods Units Desired Ending Finished Goods Units Beginning Direct Materials Total Required Units Total Pounds Needed for Production Required Production Units Expected Unit Sales Compute the production cost per unit under each plan. (Round answers to 2 decimal places, eg. 1.25.) Plan A Plan B Production cost per unit $ Compute the gross profit under each plan. (Round answers to 0 decimal places, eg, 125.) Plan A Plan B Gross Profit $ $ Which plan should be accepted? should be accepted