Sheffield Industries had sales in 2016 of $6.960,000 and gross profit of $1,152,000. 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 Bwould decrease the selling price per unit by $0.50. The marketing department expects that the sales volume would increase by 104,000 units. At the end of 2016, Sheffield has 45,000 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 72,000 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 $1,662,000. (a) SHEFFIELD INDUSTRIES Production Budget For the Year Ending December 31, 2017 Plan A Plan B Expected Unit Sales 783000 974000 Add : Desired Ending Finished Goods Units 39150 72000 Total Required Units 822150 1046000 Less Beginning Finished Goods Units -45000 -450001 Required Production Units 777150 1001000 e Textbook and Media Attempts: 2 of 3 used (c) Compute the production cost per unit under each plan (Round answers to 2 decimal places, eg. 1.25.) Plan A Plan B Production cost per unit $ $