Your answer is partially correct Prepare a production budget for 2022 under each plan PHAROAH INDUSTRIES Production Budget For the Year Ending December 31, 2022 Plan A Plan B Expected Unit Sales 652500 582000 Add V Desired Ending Finished Goods Units 33000 50000 Reduled Production Units Beginning Finished Goods Units 37000 37000 Desired Endine Finished Goods Units 648500 203000 Pharoah Industries had sales in 2021 of $ 6,120,000 and gross profit of $ 990.000. 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 112.500 units from its 2621 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 2021. Pharoah has 37,000 units of inventory on hand. If Plan A is accepted the 2022 ending Inventory should be 33.000 units. If Plan B is accepted, the ending Inventory should be equal to 58,000 units. Each unit produced will cost $ 150 in direct labor $ 1.30 in direct materials, and $ 1.20 in variable overhead. The fixed overhead for 2022 should be $1.706.000