Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 1 of 5 - 72 III View Policies Current Attempt in Progress Concord Industries had sales in 2021 of $5,480,800 and gross profit of

image text in transcribedimage text in transcribed

Question 1 of 5 - 72 III View Policies Current Attempt in Progress Concord Industries had sales in 2021 of $5,480,800 and gross profit of $886,600. Management is considering two alternative budget plans to increase its gross profit in 2022. Plan A would increase the unit selling price from $8.00 to $8.40. Sales volume would decrease by 100,750 units from its 2021 level. Plan B would decrease the unit selling price by $0.50. The marketing department expects that the sales volume would increase by 104,780 units. At the end of 2021, Concord has 32,240 units of inventory on hand. If Plan A is accepted, the 2022 ending inventory should be 28,210 units. If Plan B is accepted, the ending inventory should be equal to 48,360 units. Each unit produced will cost $1.5 in direct labor, $1.3 in direct materials, and $1.2 in variable overhead. The fixed overhead for 2022 should be $1,527,370. (a) Prepare a sales budget for 2022 under each plan. (Round Unit selling price answers to 2 decimal places, e.g. 52.70.) CONCORD INDUSTRIES Sales Budget Plan A Plan B > $ $ $ $ e Textbook and Media Save for Later Attempts: 0 of 5 used Submit Answer Prepare a production budget for 2022 under each plan. SHERIDAN INDUSTRIES Production Budget Plan A Plan B (c1). Compute the production cost per unit under each plan. (Round answers to 2 decimal places, e.g. 1.25.) Plan A Plan B Production cost per unit $ $ (d). Compute the gross profit under each plan. (Round answers to 0 decimal places, e.g. 125.) Plan A Plan B Gross Profit $ $ Which plan should be accepted? v should be accepted

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Understanding And Auditing IT Systems Volume 1

Authors: Young-Woon Min

2nd Edition

978-1257124084

More Books

Students also viewed these Accounting questions