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This is one whole question, plese answer all parts carefully. thank you Hill Industries had sales in 2019 of $7,520,000 and gross profit of $1.204,000.
This is one whole question, plese answer all parts carefully. thank you Hill Industries had sales in 2019 of $7,520,000 and gross profit of $1.204,000. Management is considering two alternative budget plans to increase its gross profitin 2020. Plan A would increase the selling price per unit from $8.00 to $8.40. Sales volume would decrease by 10% from its 2019 level. Plan B would decrease the selling price per unit by $0.50. The marketing department expects that the sales volume would increase by 117.000 units. At the end of 2019, Hill has 42.000 units of inventory on hand. If Plan A is accepted, the 2020 ending Inventory should be equal to 5% of the 2020 sales. If Plan B is accepted, the ending inventory should be equal to 71.000 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 2020 should be $1,641,822 Prepare a sales budget for 2020 under each plan. (Round Unit selling price answers to 2 decimal places, es 52.70.) HILL INDUSTRIES Sales Budget Plan A Plan B Prepare a production budget for 2020 under each plan. HILL INDUSTRIES Production Budget Plan A Compute the production cost per unit under each plan. (Round answers to 2 decimal places, es. 1.25) Plan A Plan B Production cost per units Compute the gross profit under each plan. Plan A Plan B Gross Profit Which plan should be accepted? should be accepted
This is one whole question, plese answer all parts carefully. thank you
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