Problem 13-3 (Part Level Submission) Martina Industries had sales in 2016 of $7,120,000 and gross profit of $1,121,000. Management is considering two alternative budget plans to increase is gross profit in 2017 Pan 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 120,000 units. At the end of 2016, Martinez has 48,000 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 nventory should be equal to 61,000 units. Each unit produced will cost $1.80 in direct labor, 51.40 in direct materials, and $1.20 in variable overhead. The fixed overhead for 2017 should be $1,105,000 your answer is partis correct Propers a sales budout for 2017 under each plan (Round Unit selling price answers to 2 decimal places ... 52.70.) MARTINEZ INDUSTRIES Sales Budget December 31, 2017 Plan A Plan B Expected unt sales 3010001 1010000 Unit selling price 0.40 7.50 S Total sales 6728400 7575000 Your answer is partially correct. Prepare a production budget for 2017 under each plan. MARTINEZ INDUSTRIES Production Budget For the Year Ending December 31, 2017 Plan A Plan B Expected Unit Sales 801000 1010000 Add 4 Desired Ending Direct Materials 40050 61000 841050 1071000 Total Required Units 48000 Beginning Direct Materials 48000 Less 4 793050 1023000 4 Total Pounds Needed for Production (c) Compute the production cost per unit under each plan. (Round answers to 2 decimal places, 0.g. 1.25.) Plan A Plan B Production cost per unit $