Question: please i need help with Plan B Gross Profit Problem 13-3 (Part Level Submission) Bramble Industries had sales in 2016 of $7,520,000 and gross profit

Problem 13-3 (Part Level Submission) Bramble Industries had sales in 2016 of $7,520,000 and gross profit of $1,204,000. 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 117,000 units. At the end of 2016, Bramble has 42,000 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 71,000 units. Each unit produced will cost $1,80 in direct labor, 51.40 in direct materials, and $1.20 in variable overhead. The fixed overhead for 2017 should be $1,649,000. Your answer is partially correct. Try again. Compute the gross profit under each plan. Plan A Plan B Gross Profit 1,735,000 1,627,750
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
