Question $1$ of $1$

Bramble Industries had sales in $2021$ of $$8,296,000$ and gross profit of $$1,342,000.$ 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 $153,000$ units from its $2021$ level. Plan B

would decrease the unit selling price by $$1.$ The marketing department expects that the sales volume would increase by $159,000$ units.

At the end of $2021,$ Bramble has $49,000$ units of inventory on hand. If Plan A is accepted, the $2022$ ending inventory should be $43,000$

units. If Plan B is accepted, the ending inventory should be equal to $73,000$ 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 $$2,282,800.$

$($a$)$

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

BRAMBLE INDUSTRIES

Sales Budget

Plan A

$

$

Plan B

$

$