1 of 1 View Policies Show Attempt History Current Attempt in Progress 47.5/95 Booth Company had sales in 2020 of $1,860,000 on 74,400 units. Variable costs totaled $1,116,000 and fixed costs totaled $485,000. A new raw material is available that will decrease the variable costs per unit by 20% (or $3.00). However, to process the new raw material, fixed operating costs will increase by $132,000. Management feels that two-thirds of the decline in the variable costs per unit should be passed on to customers in the form of a sales price reduction. The marketing department expects that this sales price reduction will result in a 4% increase in the number of units sold. (a1) Your answer is correct. 100 Assignm....docx Type here to search Prepare a projected CVP income statement for 2020 assuming the changes have not been made. O Google Chrome 49F R100 Assignm....docx Question 1 of 1 < > (a1) Your answer is correct. Prepare a projected CVP income statement for 2020 assuming the changes have not been made. Booth Company CVP Income Statement For the Year Ended December 31, 2020 Sales Variable Costs Contribution Margin 1,860,000 1.116.000 744,000 Google Chrome 47.5/95 49F A JGR100_Assignm....docx Question 1 of 1 (a2) Contribution Margin 744,000 Less Fixed Costs 485,000 i Net Income/(Loss) eTextbook and Media Your answer is correct. 259,000 47.5/95 Attempts: 2 of 3 used Question 1 of 1 (a2) Your answer is correct. Prepare a projected CVP income statement for 2020 assuming that changes are made as described. Booth Company CVP Income Statement For the Year Ended December 31, 2020 Sales Variable Costs Contribution Margin A . 1,779,648 928,512 851,136 47.5/95 OCX Question 1 of 1 (b) Less Fixed Costs Net Income/(Loss) eTextbook and Media tA 617,000 234,136 47.5/95 Attempts: 2 of 3 used Before Booth Company had the chance to implement usage of the new raw material, new industry specifications were announced and result in the following changes for the Booth Company. Variable costs will increase by 15% per unit and fixed costs will increase by $55,000. Management feels that a $3 per unit price increase is needed to accommodate the cost increases. However, this will result in a 10% decrease in units sold. Prepare a CVP income statement assuming these changes have been made. Question 1 of 1 < 47.5/95 = Before Booth Company nad the chance to implement usage of the new raw material, new industry specifications were announce and result in the following changes for the Booth Company. Variable costs will increase by 15% per unit and fixed costs will increase by $55,000. Management feels that a $3 per unit price increase is needed to accommodate the cost increases. However, this will result in a 10% decrease in units sold. Prepare a CVP income statement assuming these changes have been made. Booth Company CVP Income Statement For the Year Ended December 31, 2020 Sales Variable Costs Contribution Margin Less Fixed Costs Net Income/(Loss) $ LA $