* Kimmel, Survey of Accounting, le Help System Announcements CALCULATOR PRINTER VERSION 4 BACK NEXT Problem 13-3 (Part Level Submission) Sarasota Industries had sales in 2016 of $7,520,000 and gross profit of $1,128,000. Management is considering two alternative budget plans to increase its gross profit in 2017. Plan A would increase the selling price per unit from $8.00 to $8.40. Sales volume would decrease by 10% from its 2016 level. Plan B would decrease the selling price per unit by $0.50. The marketing department expects that the sales volume would increase by 101,000 units. At the end of 2016, Sarasota has 44,000 units of Inventory on hand. If Plan A is accepted, the 2017 ending inventory should be equal to 5% of the 2017 sales. If Plan B is accepted, the ending inventory should be equal to 72,000 units. Each unit produced will cost $1.80 in direct labor, $1.40 in direct materials, and $1.20 in variable overhead. The fixed overhead for 2017 should be $1,944,000. Your answer is correct. Prenare a sales hudnet (b) Your answer is partially correct. Try again. Prepare a production budget for 2017 under each plan. SARASOTA INDUSTRIES Production Budget For the Year Ending December 31, 2017 Plan A Plan B Expected Unit Sales 846000 1041000 Add Desired Ending Finished Goods Units - 42300 72000 X Total Pounds Needed for Production 4 888300 1113000 Less Direct Materials Purchases 44000 44000 Required Production Units 844300 1069000 LINK TO TEXT VIDEO: SIMILAR