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My question wording is the same but the numbers are different. Thank you for your help in advanced :) Pharoah Industries had sales in 2021
My question wording is the same but the numbers are different. Thank you for your help in advanced :)
Pharoah Industries had sales in 2021 of $7.616,000 and gross profit of $1,232,000. 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 140.000 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 145,600 units. At the end of 2021, Pharoah has 48,000 units of inventory on hand. If Plan A is accepted, the 2022 ending inventory should be 44,000 units. If Plan B is accepted, the ending inventory should be equal to 80.000 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 $2.124.000. (a) Prepare a sales budget for 2022 under each plan. (Round Unit selling price answers to 2 decimal places, eg. 52.70.) PHAROAH INDUSTRIES Sales Budget Plan A Plan B >Step by Step Solution
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