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 selling 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, Sandhill has 52,000 units of inventory on hand. If Plan A is accepted, the 2022 ending inventory should be 48,000 units. If Plan B is accepted, the ending inventory should be equal to 88,000 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 $2,276,000.

(a)

Prepare a sales budget for 2022 under each plan. (Round Unit selling price answers to 2 decimal places, e.g. 52.70.)

SANDHILL INDUSTRIES Sales Budget choose the accounting period For the Year Ending December 31, 2022For the Quarter Ending December 31, 2022December 31, 2022
		Plan A		Plan B
select an opening sales budget item Direct LaborDirect MaterialsExpected Unit SalesProduction UnitsTotal SalesUnit Selling Price		enter a number of units		enter a number of units
select a sales budget item Direct LaborDirect MaterialsExpected Unit SalesProduction UnitsTotal SalesUnit Selling Price		$enter a dollar amount		$enter a dollar amount
select a closing sales budget item Direct LaborDirect MaterialsExpected Unit SalesProduction UnitsTotal SalesUnit Selling Price		$enter a total dollar amount		$enter a total dollar amount

(b)

Prepare a production budget for 2022 under each plan.

SANDHILL INDUSTRIES Production Budget choose the accounting period For the Year Ending December 31, 2022For the Quarter Ending December 31, 2022December 31, 2022
		Plan A		Plan B
select an opening production budget item Beginning Finished Goods UnitsRequired Production UnitsTotal Required UnitsTotal Materials RequiredExpected Unit SalesBeginning Direct MaterialsDirect Materials per UnitDesired Ending Direct MaterialsTotal Pounds Needed for ProductionDesired Ending Finished Goods UnitsDirect Materials Purchases		enter a number of units		enter a number of units
select between addition and deduction AddLess: select a production budget item Desired Ending Finished Goods UnitsBeginning Finished Goods UnitsTotal Pounds Needed for ProductionBeginning Direct MaterialsExpected Unit SalesTotal Required UnitsRequired Production UnitsDirect Materials PurchasesDirect Materials per UnitDesired Ending Direct MaterialsTotal Materials Required		enter a number of units		enter a number of units
select a summarizing line for the first part Direct Materials per UnitDirect Materials PurchasesTotal Required UnitsTotal Materials RequiredExpected Unit SalesTotal Pounds Needed for ProductionBeginning Finished Goods UnitsRequired Production UnitsDesired Ending Direct MaterialsBeginning Direct MaterialsDesired Ending Finished Goods Units		enter a total number of units for the first part		enter a total number of units for the first part
select between addition and deduction AddLess: select a production budget item Direct Materials per UnitTotal Required UnitsDesired Ending Direct MaterialsDirect Materials PurchasesRequired Production UnitsDesired Ending Finished Goods UnitsTotal Materials RequiredExpected Unit SalesBeginning Finished Goods UnitsBeginning Direct MaterialsTotal Pounds Needed for Production		enter a number of units		enter a number of units
select a closing production budget item Direct Materials per UnitBeginning Finished Goods UnitsTotal Materials RequiredBeginning Direct MaterialsRequired Production UnitsTotal Pounds Needed for ProductionTotal Required UnitsDirect Materials PurchasesDesired Ending Finished Goods UnitsExpected Unit SalesDesired Ending Direct Materials		enter a total number of units		enter a total number of units