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Question 2 Swifty Industries had sales in 2016 of $7,520,000 and gross profit of $1,261,000. 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 115,000 units. At the end of 2016, Swifty has 45,000 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 66,000 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 $1,553,000. (a) Your answer is correct. Prepare a sales budget for 2017 under each plan. (Round Unit selling price answers to 2 decimal places SWIFTY INDUSTRIES Sales Budget For the Year Ending December 31, 2017 Plan A Plan Expected unit sales 1055000 Unit selling price 7.5 (d) Your answer is partially correct. Try again. Compute the gross profit under each plan. Plan A Plan B Ix! Gross Profit 1861200 1793500 Which plan should be accepted? Plan A - should be accepted. LINK TO TEXT VIDEO: SIMILAR PROBL