$($D$).$

Prepare a production budget for $2022$ under each plan.

SWIFTY INDUSTRIES

Production Budget

Plan A

Plan B

$($c$1).$

Compute the production cost per unit under each plan. $($Round answers to $2$ decimal places, e$.$g$.1\mathrm{.}25.)$

$\backslash$table$[[,$Plan A$,,$Plan B$],[$Production cost per unit,$$,,$$$,]]$

Compute the gross profit under each plan. $($Round answers to $0$ decimal places, e$.$g$.125.)$

Gross Profit $\frac{\text{P}\text{l}\text{a}\text{n}A}{\text{\$}}\frac{\text{P}\text{l}\text{a}\text{n}B}{\text{\$}}$

Which plan should be accepted?

$$ should be accepted.

Swifty Industries had sales in $2021$ of $$6,936,000$ and gross profit of $$1,122,000.$ Management is considering two alternative budget plans to increase its gross profit in $2022.$

Plan A would increase the unit selling price from $$8$ to $$8\mathrm{.}4.$ Sales volume would decrease by $128,000$ units from its $2021$ level. Plan B would decrease the unit selling price by $$0\mathrm{.}5.$ The marketing department expects that the sales volume would increase by $133,000$ units.

At the end of $2021,$ Swifty has $41,000$ units of inventory on hand. If Plan A is accepted, the $2022$ ending inventory should be $36,000$ units. If Plan B is accepted, the ending inventory should be equal to $61,000$ units. Each unit produced will cost $$1\mathrm{.}50$ in direct labor, $$1\mathrm{.}30$ in direct materials, and $$1\mathrm{.}20$ in variable overhead. The fixed overhead for $2022$ should be $$1,835,000.$

Prepare a sales budget for $2022$ under each plan. $($Round Unit selling price answers to $2$ decimal places, e$.$g$.52\mathrm{.}70.)$

SWIFTY INDUSTRIES Sales Budget

For the Year Ending December $31,2022$

$$

$$

$$

Plan A

$q,$

$q,$

$

$

$q,$

$q,$

Plan B

$q,$

$q,$

$

$q,$

$