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I got 6 errors I don't know where is it thanks Litwin Industries had sales in 2015 of $5.6 million (800000 units) and a gross
I got 6 errors I don't know where is it
thanks
Litwin Industries had sales in 2015 of $5.6 million (800000 units) and a gross profit of $1344000. Management is considering two alternative budget plans to increase its gross profit in 2016. Plan A would increase the selling price per unit from $7 to $7.60. Sales volume would decrease by 10% from its 2015 level. Plan B would decrease the selling price per unit by 5%. The marketing department expects that the sales volume would increase by 100000 units. At the end of 2015, Litwin had 70000 units on hand. If it accepts Plan A, the 2016 ending inventory should be equal to 90000 units. If it accepts Plan B, the ending inventory should be equal to 100000 units. Each unit produced will cost $2 in direct materials, $1.50 in direct labour, and $0.50 in variable overhead. The fixed overhead for 2016 should be $925000. Prepare a sales budget for 2016 under Plan A and Plan B. Use $ when appropriate, no commas, use 2 decimal places for unit prices, zero decimal places for totals. Prepare a production budget for 2016 under Plan A and Plan B. Use $ where appropriate, no commas, use 2 decimal places for unit prices, zero decimal places for totals, put negative numbers and subtractions in () e.g. ($45000). Calculate the total cost per unit under Plan A and Plan B. Carry three decimal placesStep by Step Solution
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