Ivanhoe Industries had sales in 2021 of $5,848,000 and gross profit of $946,000. 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 107,500 units 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 111,800 units. At the end of 2021, Ivanhoe has 35,000 units of inventory on hand. If Plan A is accepted, the 2022 ending inventory should be 31,000 units. If Plan B is accepted, the ending inventory should be equal to 54,000 units. Each unit produced will cost $1.50 in direct labor, $1.30 in direct materials, and $1.20 in variable overhead. The fixed overhead for 2022 should be $1,630,000. Prepare a sales budget for 2022 under each plan. (Round Unit selling price answers to 2 decimal places, e.g. 52.70.) IVANHOE INDUSTRIES Sales Budget Plan A Plan B $ $ $ $ $ IVANHOE INDUSTRIES Production Budget Plan A Plan B 4 4 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 $ $ Compute the gross profit under each plan. Plan A Plan B Gross Profit $ $ Which plan should be accepted? should be accepted