Ivanhoe Industries had sales in 2021 of $7,344,000 and gross profit of $1.188,000. 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 135,000 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 140,400 units. At the end of 2021, Ivanhoe has 46,000 units of inventory on hand. If Plan A is accepted, the 2022 ending inventory should be 42,000 units. If Plan B is accepted, the ending inventory should be equal to 76,000 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 $2,048,000. Expected Unit Sales Unit Selling Price Total Sales IVANHOE INDUSTRIES Sales Budget For the Year Ending December 31, 2022 Plan A Plan B SA 783000 8.4 $ +A 1058400 7.5 $ 6577200 $ 7938000 Expected Unit Sales IVANHOE INDUSTRIES Production Budget For the Year Ending December 31, 2022 Add Desired Ending Finished Goods Units Total Required Units Less Plan A 783000 42000 825000 Beginning Finished Goods Units 46000 Required Production Units 779000 Plan B 1058400 76000 1134400 46000 1088400 Compute the production cost per unit under each plan. (Round answers to 2 decimal places, e.g. 1.25.) Plan A Production cost per unit $ Plan B (d) Compute the gross profit under each plan. Gross Profit $ Plan A Which plan should be accepted? should be accepted. $ tA Plan B