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Question 1 of 1 Sheffield Industries had sales in 2 0 2 1 of $ 8 , 4 3 2 , 0 0 0 and

Question 1 of 1
Sheffield Industries had sales in 2021 of $8,432,000 and gross profit of $1,364,000. Management is considering two alternative
budget plans to increase its gross profit in 2022.
Plan A would increase the unit selling price from $8 to $8.4. Sales volume would decrease by 155,000 units from its 2021 level. Plan B
would decrease the unit selling price by $1. The marketing department expects that the sales volume would increase by 161,000 units.
At the end of 2021, Sheffield has 50,000 units of inventory on hand. If Plan A is accepted, the 2022 ending inventory should be 43,000
units. If Plan B is accepted, the ending inventory should be equal to 74,000 units. Each unit produced will cost $1.50 in direct labor,
$1.30 in direct materials, and $1.20 in variable overhead. The fixed overhead for 2022 should be $2,408,400.
(a)
Prepare a sales budget for 2022 under each plan. (Round Unit selling price answers to 2 decimal places, e.g.52.70.)
SHEFFIELD INDUSTRIES
Sales Budget
For the Year Ending December 31,2022
Plan A
Unit Selling Price
Plan B
$
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