Bramble Industries had sales in 2024 of $7,412,000 and gross profit of $1,199,000. Management is considering...
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Bramble Industries had sales in 2024 of $7,412,000 and gross profit of $1,199,000. Management is considering two alternative budget plans to increase its gross profit in 2025. Plan A would increase the unit selling price from $8.00 to $8.40. Sales volume would decrease by 136,250 units from its 2024 level. Plan B would decrease the unit selling price by $0.50. The marketing department expects that the sales volume would increase by 141,700 units. At the end of 2024, Bramble has 43,600 units of inventory on hand. If Plan A is accepted, the 2025 ending inventory should be 38,150 units. If Plan B is accepted, the ending inventory should be equal to 65,400 units. Each unit produced will cost $1.50 in direct labor, $1.30 in direct materials, and $1.20 in variable overhead. The fixed overhead for 2025 should be $2,040,480. Prepare a sales budget for 2025 under each plan. (Round Unit selling price answers to 2 decimal places, e.g. 52.70.) BRAMBLE INDUSTRIES Sales Budget eTextbook and Media Save for Later $ Plan A Plan B BRAMBLE INDUSTRIES Production Budget Attempts: 0 of 10 used Submit Answer Plan A Plan B (C1) Compute the production cost per unit under each plan. (Round answers to 2 decimal places, e.g. 1.25.) Production cost per unit $ (d) Plan A Plan B $ Compute the gross profit under each plan. (Round answers to O decimal places, e.g. 125.) Gross Profit Plan A Which plan should be accepted? should be accepted. Plan B Bramble Industries had sales in 2024 of $7,412,000 and gross profit of $1,199,000. Management is considering two alternative budget plans to increase its gross profit in 2025. Plan A would increase the unit selling price from $8.00 to $8.40. Sales volume would decrease by 136,250 units from its 2024 level. Plan B would decrease the unit selling price by $0.50. The marketing department expects that the sales volume would increase by 141,700 units. At the end of 2024, Bramble has 43,600 units of inventory on hand. If Plan A is accepted, the 2025 ending inventory should be 38,150 units. If Plan B is accepted, the ending inventory should be equal to 65,400 units. Each unit produced will cost $1.50 in direct labor, $1.30 in direct materials, and $1.20 in variable overhead. The fixed overhead for 2025 should be $2,040,480. Prepare a sales budget for 2025 under each plan. (Round Unit selling price answers to 2 decimal places, e.g. 52.70.) BRAMBLE INDUSTRIES Sales Budget eTextbook and Media Save for Later $ Plan A Plan B BRAMBLE INDUSTRIES Production Budget Attempts: 0 of 10 used Submit Answer Plan A Plan B (C1) Compute the production cost per unit under each plan. (Round answers to 2 decimal places, e.g. 1.25.) Production cost per unit $ (d) Plan A Plan B $ Compute the gross profit under each plan. (Round answers to O decimal places, e.g. 125.) Gross Profit Plan A Which plan should be accepted? should be accepted. Plan B
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