Problem 23-3A (Part Level Submission) Hill Industries had sales in 2016 of $ 6,800,000 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 per 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 $ 1.80 in direct labor, $ 1.40 in direct materials, and $ 1.20 in variable overhead. The fixed overhead for 2017 should be $ 1,000,000 . Compute the Production cost per unit , the gross profit for each plan? which plan should you choose