--/1 Question 4 View Policies Current Attempt in Progress Carey Company had sales in 2019 of $1,679,400 on 62,200 units. Variable costs totaled $870,800, and fixed costs totaled $547,000. A new raw material is available that will decrease the variable costs per unit by 20% (or $2.80). However, to process the new raw material, fixed operating costs will increase by $97.000. Management feels that one-half 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 5% increase in the number of units sold. (a) Prepare a projected CVP income statement for 2020, assuming the changes have not been made. CAREY COMPANY CVP Income Statement Total Per Unit View Policies Current Attempt in Progress Carey Company had sales in 2019 of $1,679,400 on 62,200 units. Variable costs totaled $870,800, and fixed costs totaled $547,000. A new raw material is available that will decrease the variable costs per unit by 20% (or $2.80). However, to process the new raw material, fixed operating costs will increase by $97.000. Management feels that one-half 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 5% increase in the number of units sold. (a) Prepare a projected CVP income statement for 2020, assuming the changes have not been made. CAREY COMPANY CVP Income Statement December 31, 2020 Per Unit For the Quarter Ended December 31, 2020 For the Year Ended December 31, 2020 (b) Prepare a projected CVP income statement for 2020, assuming that changes are made as described. (Round per unit cost to 2 decimal places, e.g. 5.25 and all other on decimal places, eg 12251 (b) Prepare a projected CVP income statement for 2020, assuming that changes are made as described. (Round per unit cost to 2 decimal places, e.g. 5.25 and all other answers to o decimal places, eg. 1,225.) CAREY COMPANY CVP Income Statement Total Per Unit e Textbook and Media Save for Later Attempts: 0 of 3 used Submit Answer Send to Gradebook