Business, 12.03.2021 15:20 gabbyk22

Grouper Industries had sales in 2016 of $6,880,000 and gross profit of $1,205,000. Management is considering two alternative budget plans to increase its gross profit in 2017. Plan A would increase the selling price per unit from $8.00 to $8.40. Sales volume would decrease by 10% from its 2016 level. Plan B would decrease the selling price per unit by $0.50. The marketing department expects that the sales volume would increase by 102,000 units. At the end of 2016, Grouper has 41,000 units of inventory on hand. If Plan A is accepted, the 2017 ending inventory should be equal to 5% of the 2017 sales. If Plan B is accepted, the ending inventory should be equal to 64,000 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 2017 should be $1,360,000. Prepare a sales budget for 2017 under each plan. (Round Unit selling price answers to 2 decimal places, e. g. 52.70.) GROUPER INDUSTRIES Sales Budget For the Year Ending December 31, 2017 - Plan A Plan B Expected unit sales 774000 1.00 962000.00 Unit selling price 8.40 Total sales 6501600.00 7215000.00
Prepare a production budget for 2017 under each plan. GROUPER INDUSTRIES Production Budget Plan A Plan B

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Grouper Industries had sales in 2016 of $6,880,000 and gross profit of $1,205,000. Management is con...

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