Waterway Industries had sales in 2021 of $5,766,400 and gross profit of $932,800. Management is considering two alternative budget plans to increase its gross profitin 2022. Plan A would increase the unit selling price from $8.00 to $8.40. Sales volume would decrease by 106,000 units from its 2021 level. Plan B would decrease the unit selling price by $0.50. The marketing department expects that the sales volume would increase by 110,240 units. At the end of 2021. Waterway has 33,920 units of inventory on hand. If Plan A is accepted, the 2022 ending inventory should be 29,680 units. If Plan B is accepted the ending inventory should be equal to 50,880 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 $1,606,960 (a) Prepare a sales budget for 2022 under each plan. (Round Unit selling price answers to 2 decimal places, eg. 52.70.) WATERWAY INDUSTRIES Sales Budget Plan A Plan B $ $ $ LA WATERWAY INDUSTRIES Production Budget Plan A Plan B e Textbook and Media Save for Later Attempts: 0 of 2 used Submit Answer (61) 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 $ Compute the gross profit under each plan. (Round answers to O decimal places, e.g. 125.) Plan A Plan B Gross Profit $ Which plan should be accepted? should be accepted