find production cost per unit under each plan A and B? compute gross profit under...
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find production cost per unit under each plan A and B? compute gross profit under each plan?
Sunland Industries had sales in 2021 of $7.888,000 and gross profit of $1,276,000. Management is considering two alternative budget plans to increase its gross profit in 2022. Plan A would increase the selling price per unit from $8.00 to $8.40. Sales volume would decrease by 145,000 units from its 2021 level. Plan B would decrease the selling price per unit by $0.50. The marketing department expects that the sales volume would increase by 150,800 units. At the end of 2021. Sunland has 50,000 units of inventory on hand. If Plan A is accepted, the 2022 ending inventory should be 46.000 units. If Plan B is accepted, the ending inventory should be equal to 84,000 units. Each unit produced will cost $1.50 in direct labor, $1.30 in direct materials, and $ 1.20 in variable overhead. The fixed overhead for 2022 should be $2,200,000. al
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