Hill Industries had sales in 2019 of $7,600,000 and gross profit of $1,199,000. 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 would increase by 107,000 units. Sales volume would decrease by 10% from its 2019 level. pan B would decrease he selling price per unit by $0.50 The marketing department expects that the sales volume At the end of 2019 Hill has 48.000 units of inventory on hand. If Plan A s accepted, the 2020 ending nventory should be equal to 5% of the 0 0sa es lf Plan Bis accepted th produced will cost $1.80 in direct labor, $1.40 in direct materials, and $1.20 in variable overhead. The flxed overhead for 2020 should be $1,767,480. ending nven ory ho i OO units. Each unit be equal to o 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 Desired Ending Finished Goods u Total Required Units Less Beginning Finished Goods UnitsY Required Production Units