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Swifty industries had sales in 2021 of $5,453,600 and gross profit of $882,200. Management is considering two alternative budget plans to increase its gross profit

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Swifty industries had sales in 2021 of $5,453,600 and gross profit of $882,200. 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 100,250 units from its 2021 level. Plan B would decrease the tinit selling price by $0.50. The marketing department expects that the sales volume would increase by 104,260 units. At the end of 2021, Swifty has 32,080 units of inventory on hand. If Plan A is accepted, the 2022 ending inventory should be 28,070 units, if Plan B is accepted, the ending inventory should be equal to 48,120 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 $1,519,790 (a) Prepare a sales budget for 2022 under each plan. (Round Unit selling price answers to 2 decimol ploces, es. 52.70 ) Conscute the production cost per unit under each plan (Found anwwers to 2 decimol places, e.2 1.25) Compute the gross profit under each plan. (Round answers to 0 decimal places, es. 125.)

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