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Lily Industries had sales in 2021 of $5,644,000 and gross profit of $913,000. Management is considering two alternative budget plans to increase its gross profit in 2022. Plan A would increase the unit selling price from $8.00 to $8.40. Sales volume would decrease by 103.750 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 107,900 units. At the end of 2021, Lily has 33,200 units of inventory on hand. If Plan A is accepted, the 2022 ending inventory should be 29,050 units. If Plan B is accepted, the ending inventory should be equal to 49,800 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 $1,572,850. Preparea saies budget for 2022 under each plan. (Round Unit selling price answers to 2 decimal places, e.g. 52.70. ) Prepare a production budget for 2022 under each plan. Compute the production cost per unit under each plan. (Round answers to 2 decimal places, e. . 1.25.) Compute the gross profit under each plan. (Round answers to O decimal places, e.g. 125.) Which plan should be accepted? should be accepted

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