PB-JB Dgleby Industries has sales in 2016 of $5,600,000 (800,000 units} and gross prot of $1,344,000. Management is considering two alternative budget plans to increase its gross prot in 2017. Plan A would increase the selling price per unit from $100 to $21.60. Sales volume would decrease by 5% from its 2016 level. Plan B would decrease the selling price per unit by 5%. The marketing department expects that the sales volume would increase by 1 50,000 units. At the end of 2016, Dgleby has T0000 units on hand. If Plan A is accepted, the 2011'r ending inventory should be equal to 90,000 units. If Plan B is accepted. the ending inven tory should be equal to 100,000 units. Each unit produced will cost $2 .00 in direct materi als, $1.50 in direct labor, and $0.50 in variable overhead. The xed overhead for 2011:r should be $980,000. Instructions (a) Prepare a sales budget for 201'? under (1) Plan A and (2) Plan B. (1)) Prepare a production budget for 2014 under l[1) Plan A and (2) Plan B. l(c) Compute the cost per unit under {1) Plan A and (2} Plan B. Explain why the cost per unit is different for each of the two plans. (Round to two decimals.) {d} 'Which plan should be accepted? l(Hint: Compute the gross prot under each plan.)