Sandhill Industries had sales in 2021 of $8,160,000 and gross profit of $1,320,000. Management is considering two altern

[answerhappygod]

Sandhill Industries had sales in 2021 of$8,160,000 and gross profit of $1,320,000. Management isconsidering two alternative budget plans to increase its grossprofit in 2022.Plan A would increase the selling price per unit from $8.00 to$8.40. Sales volume would decrease by 150,000 units fromits 2021 level. Plan B would decrease the selling price per unit by$0.50. The marketing department expects that the sales volume wouldincrease by 156,000 units.At the end of 2021, Sandhill has 52,000 unitsof inventory on hand. If Plan A is accepted, the 2022 endinginventory should be 48,000 units. If Plan B is accepted,the ending inventory should be equal to 88,000 units.Each unit produced will cost $1.50 in direct labor,$1.30 in direct materials, and $1.20 in variableoverhead. The fixed overhead for 2022 should be $2,276,000.
Compute the production cost per unit under eachplan. (Round answers to 2 decimal places, e.g.1.25.)
Plan A
Plan B
Production cost per unit
$enter production cost per unit in dollars rounded to 2 decimalplaces
$enter production cost per unit in dollars rounded to 2 decimalplaces
(d)
Compute the gross profit under each plan.
Plan A
Plan B
Gross Profit
$enter gross profit in dollars
$enter gross profit in dollars
Which plan should be accepted?