Problem 21-3A (Part Level Submission) Hill Industries had sales in 2016 of 56,800,000 and gross profit of $1,100,000. 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 unit by $0.50. The marketing department expects that the sales volume would increase by 100,000 units. At the end of 2016, Hill has 40,000 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 60,000 units. Each unit produced will cost $1.30 in direct labor, $1.40 in direct materials, and $1.20 in variable overhead. The fixed overhead for 2017 should be $1,000,000. Your answer is partially correct. Try again. Prepare a sales budget for 2017 under each plan. (Round Unit selling ors to 2 decimal places, e.g. 52.70.) KILL INDUSTRIES Sales Budget For the Year Ending December 31, 2017 Plan A Plan B Expected unit sales 765000 958000 Unit selling price 8.40 TOUUUU Unit selling price 8.40 7.50 Total sales 6426000 7125000 Click if you would like to Show Work for this question: Open Show Work Prepare a production budget for 2017 under each plan. A(Part esion 3A (Part ssion) 4A (Part ssion -20 (Part Ission) -6A (Part mission) HILL INDUSTRIES Production Budget For the Year Ending December 31, 2017 Plan A Plan B Expected Unit Sales Sales 765000 958000 alts by tive Desired Ending Finished Goods Units 38250 62000 Total Required Units 803250 | 1020000 SS : Beginning Finished Goods Units -44000 -44000 Required Production Units 759250 976000 Click if you would like to Show Work for this question: Open Show Work Type here to search