CALCULATOR PRINTER VERSION BACK NE Problem 21-3A (Part Level Submission) Hill Industries had sales in 2016 of $6,800,000 and gross profit of $1,100,000. Management is considering two alternative budget plans to increase its gross profit in 2017. Plan A would increase the selling price per unit from $8.00 to $8.40. Sales volume would decrease by 10% from its 2016 level. Plan B would decrease the selling price per unit by $0.50. The marketing department expects that the sales volume would increase by 100,000 units. At the end of 2016, Hill has 40,000 units of Inventory on hand. If Plan A is accepted, the 2017 ending inventory should be equal to 5% of the 2017 sales. If Plan B is accepted, the ending Inventory should be equal to 60,000 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 2017 should be $1.000.000, (a) Your answer is partially correct. Try again. Prepare a sales budget for 2017 under each plan. (Round Unit selling price answers to 2 decimal places, e.g. 52.70.) HILL INDUSTRIES Sales Budget For the Year Ending December 31, 2017 Plan A Plan B Expected unit sales 765000 958000 Unit selling price 8.40 HILL INDUSTRIES Sales Budget For the Year Ending December 31, 2017 V Plan A Plan B Expected unit sales 765000 958000 Unit selling price sl 8.40 7.50 Total sales 6426000 7125000 Click if you would like to Show Work for this question: Open Show Work Your answer is correct. Prepare a production budget for 2017 under each plan. HILL INDUSTRIES Production Budget For the Year Ending December 31, 2017 Plan A Plan B Expected Unit Sales 765000 950000 Add Desired Ending Finished Goods Units 60000 Total Required Units 803250 1010000 Less Beginning Finished Goods Units T 40000 40000 Required Production Unit 763250 970000 Click if you would like to Show Work for this question: Open Show Work to search ORL 3 N Attempts: 2 of 3 (c) Compute the production cost per unit under each plan. (Round answers to 2 decimal places, e.g. 1.25.) Plan A plan B Production cost per units Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT VIDEO: SIMILAR PROBLEM Attempts: 0 of 3 used SAVE (d) The parts of this question must be completed in order. This part will be available when you complete the part above