Hill Industries had sales in 2019 of $6,800,000 and gross profit of $1,100.000. Management is considering two alternative budget plans to increase its gross profit in 2020. Plan A would increase the seliing price per unit from $8.00 to $8.40. Sales volutne would decrease by 10% from its 2019 level Plan B would decrease the selling price per unit by $0.50. The marketing department expects that the sales volume would increase by 100,000 units. At the end of 2019, Hill has 40.000 units of inventory on hand. If Plan A is accepted, the 2020 ending inventory should be equal to 5% of the 2020 sales. If Plan B is accepted the ending inventory should be equal to 60,000 units. Each unit produced will cost $1.80 in direct labor. $1.40 in direct materials and $1.20 in variable overhead. The fixed overhead for 2020 should be 31895.000. (a) Your answer is partially correct. Prepare a sales budget for 2020 under each plan. (Round Unit selling price answers to 2 decimal places.c. 52.70) HILL INDUSTRIES Sales Budget For the Year Ending December 31, 2020 Plan A Plan B Expected Unit Sales 765000 950000 $ V S 7.50 Unit Selling Price S Total Sales 6120000 7129000 Your answer is correct. Prepare a production budget for 2020 under each plan, HILL INDUSTRIES Production Budget For the Year Ending December 31, 2020 Plan A Plan B Expected Unit Sales 765000 950000 Add Desired Ending Finished Goods Units 38250 60000 Total Required Units 803250 1010000 Less V Beginning Finished Goods Units 40000 40000 1 Required Production Units 763250 920000 e Textbook and Media Solution Attempts: 2 of 3 used x Your answer is incorrect Compute the production cost per unit under each plan. (Round answers to 2 decimal places, eg. 125.) Plan A Plan B Production cost per unit 6.28 $ 5.75 e Textbook and Media Save for Later Attempts: 1 of 3 used Submit Answer (d) x Your answer is incorrect. Compute the gross profit under each plan Plan A Plan B Gross Proht $ 1313655 $ 1659072 Which plan should be accepted? Pan should be accepted