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Hill Industries had sales in 2021 of $6,800,000 and gross profit of $1,100,000. Mana plans to increase its gross profit in 2022. Plan A would increase the unit selling price from $8 to $8.4. Sales volume would decrease by 125.000 units from its 2021 level. Plan B would decrease the unit selling price by $0.5. The marketing department expects that the sales volume would increase by 130.000 units At the end of 2021, Hill has 40.000 units of inventory on hand. If 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. Each unit produced will cost $1.50 in direct labor, $1.30 in direct materials, and $1.20 in variable overhead. The foxed overhead for 2022 should be $1.895,000 (a) Prepare a sales budget for 2022 under each plan, (Round Unit selling price answers to 2 decimal places, eg 52.70) HILL INDUSTRIES Sales Budget for the Year Ending December 31, 2022 Plan A Plan B

Hill Industries had sales in 2021 of $6,800,000 and gross profit of $1,100,000. Mana plans to increase its gross profit in 2022. Plan A would increase the unit selling price from $8 to $8.4. Sales volume would decrease by 125.000 units from its 2021 level. Plan B would decrease the unit selling price by $0.5. The marketing department expects that the sales volume would increase by 130.000 units At the end of 2021, Hill has 40.000 units of inventory on hand. If 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. Each unit produced will cost $1.50 in direct labor, $1.30 in direct materials, and $1.20 in variable overhead. The foxed overhead for 2022 should be $1.895,000 (a) Prepare a sales budget for 2022 under each plan, (Round Unit selling price answers to 2 decimal places, eg 52.70) HILL INDUSTRIES Sales Budget for the Year Ending December 31, 2022 Plan A Plan B

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hill Industries had sales in 2021 of $6,800,000 and gross profit of $1.100,000. Management is considering two alternative budget plans to increase its gross profit in 2022. Plan A would increase the unit selling price from $8 to $8.4. Sales volume would decrease by 125,000 units from its 2021 level. Plan B would decrease the unit selling price by $0.5. The marketing department expects that the sales volume would increase by 130,000 units At the end of 2021, Hill has 40,000 units of inventory on hand. If 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. 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 $1,895,000 (a) Prepare a sales budget for 2022 under each plan. (Round Unit selling price answers to 2 decimal places, eg. 52.70) HILL INDUSTRIES Sales Budget For the Year Ending December 31, 2022 Plan A S S Plan B
Transcribed Image Text:Hill Industries had sales in 2021 of $6,800,000 and gross profit of $1.100,000. Management is considering two alternative budget plans to increase its gross profit in 2022. Plan A would increase the unit selling price from $8 to $8.4. Sales volume would decrease by 125,000 units from its 2021 level. Plan B would decrease the unit selling price by $0.5. The marketing department expects that the sales volume would increase by 130,000 units At the end of 2021, Hill has 40,000 units of inventory on hand. If 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. 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 $1,895,000 (a) Prepare a sales budget for 2022 under each plan. (Round Unit selling price answers to 2 decimal places, eg. 52.70) HILL INDUSTRIES Sales Budget For the Year Ending December 31, 2022 Plan A S S Plan B
(b) Prepare a production budget for 2022 under each plan. HILL INDUSTRIES Production Budget Production cost per unit $ Compute the production cost per unit under each plan. (Round answers to 2 decimal places, eg 1.25.) Plan A Plan A $ Plan B Plan B
Transcribed Image Text:(b) Prepare a production budget for 2022 under each plan. HILL INDUSTRIES Production Budget Production cost per unit $ Compute the production cost per unit under each plan. (Round answers to 2 decimal places, eg 1.25.) Plan A Plan A $ Plan B Plan B
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