Help answering question (D) please

Bridgeport Industries had sales in 2016 of $7,200,000 and gross profit of $1.213,000. Management is considering two alternative budget plans to increase its gross profit in 2017. Plan A would increase the selling price per unit from $8.00 to $8.40. Sales volume would decrease by 10%% from its 2016 level. Plan B would decrease the selling price per unit by $0.50. The marketing department expects that the sales volume would increase by 102,000 units. At the end of 2016, Bridgeport has 45,000 units of inventory on hand. If Plan A is accepted, the 2017 ending inventory should be equal to 5% of the 2017 sales. If Plan B is accepted, the ending inventory should be equal to 62 000 units. Each unit produced will cost $1.80 in direct labor, $140 in direct materials, and $1.20 in variable overhead. The fixed overhead for 2017 should be $1,370.000. (a) Your answer is correct. Prepare a sales budget for 2017 under each plan. (Round Unit selling price answers to 2 decimal places, e.g. 52.70.J BRIDGEPORT INDUSTRIES Sales Budget For the Year Ending December 31, 2017 Plan A Plan B Expected unit sales 810000 1002000 Unit selling price B.40 7.50 Total sales 6804000 7515000 eTextbook and Media Solution Attempts: 3 of 3 used (b) - Your answer is partially correct. Prepare a production budget for 2017 under each plan. BRIDGEPORT INDUSTRIES Production Budget For the Year Ending December 31, 2017 Plan A Plan B Sales 810000 1002000 sired Ending Finished Goods Units 62000 62000 Units 872000 1064000 ginning Finished Goods Units 45,000 45,000 luction Units B27000 1019000Desired ending finished goods units (Plan A] = 810.000 x 5% = 40,500 Attempts: 3 of 3 used (c) - Your answer is partially correct. Compute the production cost per unit under each plan. (Round answers to 2 decimal places. e.g. 1.25.) Plan A Plan B Production cost per unit $ 6.10 5.76 eTextbook and Media Solution Assistance Used Variable costs = $4.40 per unit ($1.80 + $1.40 + $1 20) for both plans. Plan A Plan B Total variable costs $3544,200 (805,500 * $4.40) $4,483.600 (1,019,000 * $4.40) Total fixed costs 1.370,000 1,370.000 Total costs (a] $4.914,200 $5,853.600 Total units (b) 805,500 1,019.000 Unit cost (a) + [b) $6.10 $5.74 The difference is due to the fact that fixed costs are spread over a larger number of units (213,500) in Plan B. Attempts: 3 of 3 used (d) Compute the gross profit under each plan. Plan A Plan B Gross Profit $ Which plan should be accepted? * should be accepted. eTextbook and Media Save for Later Attempts: 0 of 3 used Submit