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Crane lendustries had sales in 2 0 2 1 of $ 6 , 8 7 2 , 0 0 0 and gross profit of $

Crane lendustries had sales in 2021 of $6,872,000 and gross profit of $1,111. Do0 Management is considering two alternative budget plans to increase its pross profit in 2022.
Pan A woukd increase the unt selling price from $8 to $8.4.5 ales volume would decrease by 126,000 units from its 2021 lewed. PLan B woukl desrease the unit seling price by $0.S. The marketing Separiment expects that the sales volume would increase to 131,000 urits.
At the end of 2021, Crane has 40 DO0 units of inwentory on hand. If Plan A is acsepted, the 2022 ending imventory should be 35,000 units. 14 Plan B is accepted, the ending inwentury should be equal to $1,000 units Each unit produced will cost $1.50 in dinect labor.
(a)
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