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Hill Industries had sales in 2019 of $6,960,000 and gross profit of $1,198,000. Management is considering two alternative budget plans to increase its gross profit in 2020. Plan A would increase the selling price per unit from $8.00 to $8.40. Sales volume would decrease by 10% from its 2019 level. Plan B would decrease the selling price per unit by $0.50. The marketing department expects that the sales volume would increase by 111,000 units. At the end of 2019, Hill has 48,000 units of inventory on hand. If Plan A is accepted, the 2020 ending inventory should be equal to 5% of the 2020 sales. If Plan B is accepted, the ending inventory should be equal to 72,000 units. Each unit produced will cost $1.80 in direct labor, $1.40 in direct materials, and $1.20 in variable overhead. The fixed overhead for 2020 should be $1,501,851.

Just need Gross profit for plan A. Thank you!

Your answer is correct. Prepare a sales budget for 2020 under each plan. (Round Unit selling price answers to 2 decimal places, e.g. 52.70.) HILL INDUSTRIES Sales Budget For the Year Ending December 31, 2020 Plan A Plan B Expected Unit Sales v 783000 981000 Unit Selling Price 8.4 7.5 UP Total Sales 6577200 7357500 Your answer is correct. Prepare a production budget for 2020 under each plan. HILL INDUSTRIES Production Budget For the Year Ending December 31, 2020 Plan A Plan B Expected Unit Sales 783000 981000 Add v Desired Ending Finished Goods Units v 39150 72000 Total Required Units 822150 1053000 Less v Beginning Finished Goods Units 48000 48000 Required Production Units 774150 1005000 Your answer is correct. Compute the production cost per unit under each plan. (Round answers to 2 decimal places, e.g. 1.25.) Plan A Plan B Production cost per unit 6.34 5.89 SHOW SOLUTION LINK TO TEXT LINK TO VIDEO Your answer is partially correct. Try again. Compute the gross profit under each plan. Plan A Plan B ix Gross Profit 1669089 1569600 Which plan should be accepted? Plan Av should be accepted

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