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Hill Industries had sales in 2016 of $6,800,000 with units selling for 58/each. Management is considering two alternative budget plans to increase its sales in

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Hill Industries had sales in 2016 of $6,800,000 with units selling for 58/each. Management is considering two alternative budget plans to increase its sales in 2017. Plan A would increase the selling price per unit to $8.40. With this increased selling price, management believes Expected units sales will drop by 10% compared to its 2016 level. Plan B would decrease the selling price to $7.50. The marketing department believes the expected unit sales will increase by 100,000 units over last year's units sold. (a) Prepare a sales budget for 2017 under each plan. HILL INDUSTRIES Sa Budget For the Year Ending December 31, 2017 Plan A Plan B Expected unit sales Unit selling price Total sales (b) Based on your calculations above, was management correct that both plans would have sales greater than 2016 sales? Yes or No Explain: Which plan should management choose? Plan

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