Hill industries had sales in 2019 of $6,800,000 and gross profit of $1,100,000. management is considering two alternative budget plans to increase its gross profit in 2020. prepare sales and production budgets and compute cost per unit under two plans. 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 100,000 units. at the end of 2019, hill has 40,000 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 60,000 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 $1,895,000. instructions
a. prepare a sales budget for 2020 under each plan.
b. prepare a production budget for 2020 under each plan.
c. compute the production cost per unit under each plan. why is the cost per unit different for each of the two plans? (round to two decimals.) unit cost: plan a $6.88 plan b $6.35
d. which plan should be accepted? (hint: compute the gross profit under each plan.) gross profit: plan a $1,162,800 plan b $1,092,500

Presented below is a list of possible transactions. analyze the effect of the 18 transactions on the financial statement categories indicated. transactions assets liabilities owners’ equity net income 1. purchased inventory for $80,000 on account (assume perpetual system is used). 2. issued an $80,000 note payable in payment on account (see item 1 above). 3. recorded accrued interest on the note from item 2 above. 4. borrowed $100,000 from the bank by signing a 6-month, $112,000, zero-interest-bearing note. 5. recognized 4 months’ interest expense on the note from item 4 above. 6. recorded cash sales of $75,260, which includes 6% sales tax. 7. recorded wage expense of $35,000. the cash paid was $25,000; the difference was due to various amounts withheld. 8. recorded employer’s payroll taxes. 9. accrued accumulated vacation pay. 10. recorded an asset retirement obligation. 11. recorded bonuses due to employees. 12. recorded a contingent loss on a lawsuit that the company will probably lose. 13. accrued warranty expense (assume expense warranty approach). 14. paid warranty costs that were accrued in item 13 above. 15. recorded sales of product and related service-type warranties. 16. paid warranty costs under contracts from item 15 above. 17. recognized warranty revenue (see item 15 above). 18. recorded estimated liability for premium claims outstanding.

Which analyst position analyzes information using mathematical models to business managers make decisions? -budget analyst -management analyst -credit analyst -operations research analyst

Your debit card is stolen, and you report it to your bank within two business days. how much money can you lose at most? a. $500 b. $25 c. $50 d. $150