Find the Gross Profit for Plan A and Plan B.

Sunland Industries had sales in 2021 of $5,712,000 and gross profit of $924,000. 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 105,000 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 109,200 units. At the end of 2021, Sunland has 33,600 units of inventory on hand. If Plan A is accepted, the 2022 ending inventory should be 29,400 units. If Plan B is accepted, the ending inventory should be equal to 50,400 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 $1,591,800. Compute the gross profit under each plan. (Round answers to O decimal places, e.g. 125.) Plan A Plan B Gross Profit $ 1096200 $ 1382976 Which plan should be accepted? Plan B should be accepted