Current Attempt in Progress

Crane Industries had sales in $2021$ of $$6,872,000$ and gross profit of $$1,111,000.$ 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 $126,000$ units from its $2021$ level. Plan B would decrease the unit selling price by $$0\mathrm{.}5.$ The marketing department expects that the sales volume would increase by $131,000$ units.

At the end of $2021,$ Crane 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 $61,000$ units. Each unit produced will cost $$1\mathrm{.}50$ in direct labor, $$1\mathrm{.}30$ in direct materials, and $$1\mathrm{.}20$ in variable overhead. The fixed overhead for $2022$ should be $$1,892,800.$

$($a$)$

Prepare a sales budget for $2022$ under each plan. $($Round Unit selling price answers to $2$ decimal places, e$.$g$.52\mathrm{.}70.)$

CRANE INDUSTRIES

Sales Budget

$q,$ Plan B

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$q,$

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Attempts: $0$ of $3$ used $$