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Problem 13-3 (Part Level Submission) Pina Industries had sales in 2016 of $7,280,000 and gross profit of $1,149,000. 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 112,000 units. At the end of 2016, Pina has 44,000 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 68,000 units. Each unit produced will cost $1.80 in direct labor, $1.40 i direct materials, and $1.20 in variable overhead. The fixed overhead for 2017 should be $1,972,000 (a) Prepare a sales budget for 2017 under each plan. (Round Unit selling price answers to 2 decimal places, e.g. 52.70.) PINA INDUSTRIES Sales Budget Plan A Plan B Expected unit sales Unit selling price $ $ Total sales $ s SHOW SOLUTION SUMIL ANSWE