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Sunland Industries had sales in 2021 of $7,888,000 and gross profit of $1.276.000. Management is considering two alternative budget plans to increase its gross profitin

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Sunland Industries had sales in 2021 of $7,888,000 and gross profit of $1.276.000. Management is considering two alternative budget plans to increase its gross profitin 2022. Plan A would increase the selling price per unit from $8.00 to $8.40. Sales volume would decrease by 145,000 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 150,800 units. At the end of 2021, Sunland has 50,000 units of inventory on hand. If Plan A is accepted, the 2022 ending inventory should be 46,000 units. If Plan B is accepted the ending inventory should be equal to $4,000 units. Each unit produced will cost $1.50 in direct labor $1.30 in direct materials, and $1.20 in variable overhead. The fixed verhead for 2022 should be $2,200,000 (a) - Your answer is partially correct. Prepare a sales budget for 2022 under each plan. (Round Unit selling price answers to 2 decimal places, c.8. 52.70) Your answer is partially correct. Prepare a sales budget for 2022 under each plan. (Round Unit selling price answers to 2 decimal places, eg 52.70) SUNLAND INDUSTRIES Sales Budget For the Year Ending December 31, 2022 Plan A Plan B Expected Unit Sales 387400 1056000 Unit Selling Price 84 $ 75 Total Sales 7454160 $ 8145000 - DI Prepare a production budget for 2022 under each plan SUNLAND INDUSTRIES Production Budget Plan A Plan B (c1) 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 e Textbook and Media Save for Later Attempts: 0 of 5 used Submit Answer (d) Compute the gross proht under each plan Plan A Plan B Gross Profit Which plan should be accepted? should be accepted

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