Hill Industries had sales in 2019 of $6,960,000 and gross profit of $1,126,000. Management is considering two alternative budget plans to increase its gross profit in 2020. Plan A would increase the selling price per unit from $8.00 to $8.40. Sales volume 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 109,000 units. At the end of 2019, Hill has 46,000 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 70.000 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 $1.986,944. Your answer is partially correct. Prepare a sales budget for 2020 under each plan. (Round Unit selling price answers to 2 decimal places, e.g. 52.70.) HILL INDUSTRIES Sales Budget For the Year Ending December 31, 2020 V Plan A Plan B Expected Unit Sales 783000 979000 Unit Selling Price $ 8.4 $ 7.5 Total Sales $ 6577200 $ 7342500 baland Modi 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 783000 Add Desired Ending Finished Goods Units 39150 Total Required Units 822150 Less Beginning Finished Goods Units Required Production Units 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 $ $ eTextbook and Media Your answer is partially correct. Compute the gross profit under each plan. Plan A Plan B Gross Profit $ $ Which plan should be accepted? Plan A should be accepted