help with portion B please Hill industries had sales...

50.1K

Verified Solution

Question

Accounting

help with portion B please
image
image
Hill industries had sales in 2021 of $6,800,000 and gross proth of $1.100,000. Management is conaidering two alternative budget plans to increase its gross profit in 2022. Plan A would increase the unit selling price from 58 to 5B. 4.5 ales volume wpeld decrease by 125.000 units from its 2021 level. Plan 8 would decrease the unit selling price by $0.5. The marlicting departinent espects that the sales volume would increase by 130,000 units. At the end of 2021. Hili has 40,000 units of inventory on hand. it Plan A is accepted, the 2022 ending inventory should be 35,000 units. If Plan B is accepted, the ending inventory should be equal to 60.000 units. Exch unit produced will cost 51.50 in direct labor, $1.30 in direct materials, and 51.20 in variable overhead. The fived over head for 2022 should be $1.895.000. (a) Prepare a sales budget for 2022 under exch plan iflound Unit sell tre price asseers to 2 decimal pleces, es. 52.70 J (b) Prepare a production budget for 2022 under each plan: Propere aproduction budete in 2022 weter ewh buth (de)

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!
Become a Member

Other questions asked by students