Bramble Industries had sales in 2021 of $5,548,800 and gross profit of $897,600. Management is...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Bramble Industries had sales in 2021 of $5,548,800 and gross profit of $897,600. Management is considering two alternative budget plans to increase its gross profit in 2022. Plan A would increase the unit selling price from $8.00 to $8.40. Sales volume would decrease by 102,000 units from its 2021 level. Plan B would decrease the unit selling price by $0.50. The marketing department expects that the sales volume would increase by 106,080 units. At the end of 2021, Bramble has 32,640 units of inventory on hand. If Plan A is accepted, the 2022 ending inventory should be 28,560 units. If Plan B is accepted, the ending inventory should be equal to 48,960 units. Each unit produced will cost $1.5 in direct labor, $1.3 in direct materials, and $1.2 in variable overhead. The fixed overhead for 2022 should be $1,546,320. Prepare a production budget for 2022 under each plan
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
