Problem 22-03A a-b, c1, d (Part Level Submission)

Hill Industries had sales in 2019 of $7,120,000and gross profit of $1,274,000. Management is considering two alternative budget plans to increase its gross profit in 2020.

Plan A would increase the selling price per unit from $8.00to $8.40. Sales volume would decrease by 10% from its 2019 level. Plan B would decrease the selling price per unit by $0.50. The marketing department expects that the sales volume would increase by104,000units.

At the end of 2019, Hill has46,000units of inventory on hand. If Plan A is accepted, the 2020 ending inventory should be equal to 5% of the 2020 sales. If Plan B is accepted, the ending inventory should be equal to67,000units. Each unit produced will cost $1.80in direct labor, $1.40in direct materials, and $1.20in variable overhead. The fixed overhead for 2020 should be $1,939,922.

I filled out what I knew can you help me with the rest?

Prepare production budget for 2020 under each plan.

HILL INDUSTRIES

Production Budget

For the Year Ending December 31, 2020

Plan A

Plan B

Expected Unit Sales

Add

Desired Ending Finished Goods Units

Total Required Units

Less

Beginning Finished Goods Units

Required Production Units