Question 2 Show Attempt History Current Attempt in Progress Hill Industries had sales in 2016 of $7520000 and gross proft of $1233000. 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 119000 units. At the end of 2016, Hill has 43000 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 63000 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 $1375000 Prepare a production budget for 2017 under each plan. HILL INDUSTRIES Production Budget Plan B Plan A eTextbook and Media