Problem 21-3A (Part Level Submission) Hill Industries had sales in 2016 of $6,960,000 and gross profit of $1,152,000. Management is considering two alternative budget plans to increase its gross profit in 2017. Plan 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 so.50. The marketing department expects that the sales volume would increase by 104,000 units. At the end of 2016, Hill has 45,000 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 inventory should be equal to 72,000 units. Each unit produced will cost $1.80 in direct labor, $1.40 in direct materials, and $1.20 in variable overhead. The fixed overhead for 2017 should be $1,662,000. (a) Your answer is partially correct. Try again. Prepare a sales budget for 2017 under each plan. (Round Unit selling price answers to 2 decimal places, e.g. 52.70.) HILL INDUSTRIES Sales Budget December 31, 2017 Plan A Plan B Expected unit sales 783000 Unit selling price 8.4 7.5 Total sales 6577200