q2-4

Compute the production cost per unit under each plan. (Round onswers to 2 declmal places, eg 1.25.) Prepare a sales budget for 2022 under each plan. (Round Unit selling price answers to 2 decimal places, es, 52.70 ) Compute the gross profit under each plan. Sandhill Industries had sales in 2021 of \$8,160,000 and gross profit of $1,320,000. Management is considering two alternative budget plans to increase its gross profit in 2022. Plan A would increase the setting price per unit from $8.00 to $8,40. Sales volume would decrease by 150,000 units from its 2021 level. Plan B would decrease the selling price per unit by $0.50, The marketing department expects that the sales volume would increase by 156,000 units. At the end of 2021, Sandhili has 52,000 units of inventory on hand. If Plan A is accepted, the 2022 ending ioventory should be 48,000 units. If Plan B is accepted, the ending inventory should be equal to 88,000 units. Each unit produced wilicost $1.50 in direct labor, $1.30 in direct materials, and $1.20 in variable overhead, The fixed overhead for 2022 shouid be $2.276,000. Prepare a production budget for 2022 under exch plan