18 19 20 Depreciation - office equipment Depreciation for factory equipment Advertising Sales commissions(based on units sold) Factory Property taxes Maintenance for factory equipment $40,000.00 $70,000.00 $20,000.00 $45,000.00 $10,000.00 $80,000.00 21 22. 23 24 25 Question If the following changes were to be made, calculate a new CVP Income Statement: Direct Material costs decrease by 10%; fixed costs increase by 15% and sales price would increase by 5%. Assume you are selling the 800 units. Should the company consider these changes? Why or why not? Give some real examples of cost increases for fixed costs and decreases for direct materials that could be implemented for the business. 26 27 18 19 20 Depreciation - office equipment Depreciation for factory equipment Advertising Sales commissions(based on units sold) Factory Property taxes Maintenance for factory equipment $40,000.00 $70,000.00 $20,000.00 $45,000.00 $10,000.00 $80,000.00 21 22. 23 24 25 Question If the following changes were to be made, calculate a new CVP Income Statement: Direct Material costs decrease by 10%; fixed costs increase by 15% and sales price would increase by 5%. Assume you are selling the 800 units. Should the company consider these changes? Why or why not? Give some real examples of cost increases for fixed costs and decreases for direct materials that could be implemented for the business. 26 27