Answered step by step
Verified Expert Solution
Question
1 Approved Answer
plesse help explain how to do the last photo part D. Compute the gross profit for each plan. please use the numbers i gave in
plesse help explain how to do the last photo part D. Compute the gross profit for each plan. please use the numbers i gave in the other photos.
Sheridan Industries had sales in 2021 of $8.024,000 and gross profit of $1,298,000. Management is considering two alternative budget plans to increase its gross profit in 2022 Plan A would increase the unit selling price from $8 to $8.4. Sales volume would decrease by 148,000 units from its 2021 level Plan B would decrease the unit selling price by $1. The marketing department expects that the sales volume would increase by 153,000 units At the end of 2021, Sheridan has 47,000 units of inventory on hand. If Plan A is accepted the 2022 ending inventory should be 41,000 units. If Plan B is accepted, the ending inventory should be equal to 71.000 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 $2.292.300. (a) Your answer is correct Prepare a sales budget for 2022 under each plan. (Round Unit selling price answers to 2 decimal places, eg. 52.70) SHERIDAN INDUSTRIES Sales Budget For the Year Ending December 31, 2022 Expected Unit Sales v Unit Selling Price S Total Sales Plan A 855000 84 7182000 Plan B 1156000 8092000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started