Indigo Industries had sales in 2021 of $5,544,000 and gross profit of $1,098,000. Management is considering two alternative budget plans to increase its gross profit in 2022. Plan A would increase the selling price per unit from $8.00 to $8.40. Sales volume would decrease by 10% from its 2021 level. Plan B would decrease the selling price per unit by $0.50. The marketing department expects that the sales volume would increase by 99,000 units. At the end of 2021, Indigo has 37,000 units of inventory on hand. If Plan A is accepted, the 2022 ending inventory should be equal to 5% of the 2022 sales. If Plan B is accepted, the ending inventory should be equal to 65,000 units. Each unit produced will cost $1.70 in direct labour, $1.20 in direct materials, and $1.30 in variable overhead. The fixed overhead for 2022 should be $1,885,000. Prepare a sales budget for 2022 under each plan. (Round the selling price per unit to 2 decimal places, e.g. 15.25.) INDIGO INDUSTRIES Sales Budget For the Year Ending December 31, 2022 Plan A Plan B Expected sales in units enter a number of units enter a number of units Unit selling price $enter a dollar amount rounded to 2 decimal places $enter a dollar amount rounded to 2 decimal places Total sales $enter a total dollar amount $enter a total dollar amount Question Part Score--/4 Prepare a production budget for 2022 under each plan. INDIGO INDUSTRIES Production Budget For the Year Ending December 31, 2022 Plan A Plan B select an opening production budget item enter a number of units enter a number of units select between addition and deduction : select a production budget item enter a number of units enter a number of units select a summarizing line for the first part enter a total number of units for the first part enter a total number of units for the first part select between addition and deduction : select a production budget item enter a number of units enter a number of units select a closing production budget item enter a total number of units enter a total number of units Question Part Score--/4 Calculate the production cost per unit under each plan. (Round answers to 2 decimal places, e.g. 15.25.) Plan A Plan B Production cost per unit $enter a dollar amount rounded to 2 decimal places $enter a dollar amount rounded to 2 decimal places Question Part Score--/4 Calculate the gross profit under each plan. (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 125.) INDIGO INDUSTRIES Budgeted Gross Profit For the Year Ending December 31, 2022 Plan A Plan B Expected sales $enter a dollar amount $enter a dollar amount Budgeted cost of goods sold enter a dollar amount enter a dollar amount Gross profit $enter a total amount $enter a total amount Which plan should be accepted? select a plan should be accepted.