AL NI Problem 13-3 (Part Level Submission) Martinet tndustries had sales in 2016 of $7,120,000 and groun profeet 41,121,000. Management is considering two aternative budget plans to increase its grous profit in 2017. Plan A would increase the sing price per unit from $8.00 to $8.40. Sales volume would decrease by 10% from its 2016 level, Plan 3 would decrease the selling price per unit by $0.50. The marating deoartient expects that the sales volume would increase by 120,000 units At the end of 2016, Martinet has 45,000 units of inventory on hand. Man Acted, the 2017 ending inventory should be equal to 56 of the 2017 sales Planscepted, the ending Inventory should be eat61.000 Each produced will cost $1.00 in direct labor, 14 direct mater, and $1.20 in variable overhead. The find overhead for 2017 should be 11,100,000 () Your wristwy corred merales et tur 2017 under sa plan (Round Unit setting price answers to 2 decimal places, 2.9.52.70.) MARTINEZ INDUSTRIES Sales Budget December 11, 2017 Plan A Plan B Expected units 010 1010000 Unit selling price 11.40 7.50 6728400 7575000 ng (b) Prepare a production budget for 2017 under each plan. MARTINEZ INDUSTRIES Production Budget Plan A Plan B + SHOW SOLUTION