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View Policies Current Attempt in Progress Crane Industries had sales in 2021 of $5.440,000 and gross profit of $880,000. Managemerit 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 100,000 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 104,000 units. At the end of 2021. Crane has 32.000 units of inventory on hand. If Plan A is accepted, the 2022 ending inventory should be 28,000 units. If Plan B is accepted, the ending inventory should be equal to 48,000 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 $1,516,000. (a) Prepare a sales budget for nder each plan. (Rour Unit selling price answers to 2 decimal places, eg. 52.70.) CRANE INDUSTRIES Sales Budget Plan A Plan B %24

View Policies Current Attempt in Progress Crane Industries had sales in 2021 of $5.440,000 and gross profit of $880,000. Managemerit 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 100,000 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 104,000 units. At the end of 2021. Crane has 32.000 units of inventory on hand. If Plan A is accepted, the 2022 ending inventory should be 28,000 units. If Plan B is accepted, the ending inventory should be equal to 48,000 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 $1,516,000. (a) Prepare a sales budget for nder each plan. (Rour Unit selling price answers to 2 decimal places, eg. 52.70.) CRANE INDUSTRIES Sales Budget Plan A Plan B %24

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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-/5 View Policies Current Attempt in Progress Crane Industries had sales in 2021 of $5.440,000 and gross profit of $880,000. 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 100,000 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 104,000 units. At the end of 2021. Crane has 32,000 units of inventory on hand. If Plan Ais accepted, the 2022 ending inventory should be 28,000 units. If Plan B is accepted, the ending inventory should be equal to 48,000 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 $1,516,000. (a) Prepare a sales budget for 2022 under each plan. (Round Unit selling price answers to 2 decimal places, eg. 52.70.) CRANE INDUSTRIES Sales Budget Plan A Plan B %24 eTextbook and Media %24 %24 %24
Transcribed Image Text:-/5 View Policies Current Attempt in Progress Crane Industries had sales in 2021 of $5.440,000 and gross profit of $880,000. 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 100,000 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 104,000 units. At the end of 2021. Crane has 32,000 units of inventory on hand. If Plan Ais accepted, the 2022 ending inventory should be 28,000 units. If Plan B is accepted, the ending inventory should be equal to 48,000 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 $1,516,000. (a) Prepare a sales budget for 2022 under each plan. (Round Unit selling price answers to 2 decimal places, eg. 52.70.) CRANE INDUSTRIES Sales Budget Plan A Plan B %24 eTextbook and Media %24 %24 %24
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