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) Your answer is partially correct. Prepare a sales budget for 2022 under each plan. (Round Unit selling price answers to 2 decimal places, e.g. 52.70.) PHAROAH INDUSTRIES Sales Budget For the Year Ending December 31, 2022 Plan A Plan B Expected Unit Sales 140,000 145,600 Unit Selling Price $ 8.40 $ 7.50 Total Sales $ e Textbook and Media Save for Later Last saved 4 days ago. Attempts: 2 of 5 used Submit Answer (b) Prepare a production budget for 2022 under each plan. PHAROAH INDUSTRIES Production Budget Plan A Plan B eTextbook and Media Save for Later Attempts: 0 of 5 used Submit Answer (c1) 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 $ $ e Textbook and Media Save for Later Attempts: 0 of 5 used Submit Answer (d) Compute the gross profit under each plan. Plan A Plan B Gross Profit $ $ Which plan should be accepted? should be accepted. eTextbook and Media Save for Later Attempts: 0 of 5 used Submit