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answer a2, b, C please Booth Company had sales in 2020 of $1.810,000 on 72,400 units. Variable costs totaled $1,086,000 and fixed costs totaled $493,000.

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Booth Company had sales in 2020 of $1.810,000 on 72,400 units. Variable costs totaled $1,086,000 and fixed costs totaled $493,000. 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 $130,000. 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. 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 $ 1810000 Sales Variable Costs 1086000 Contribution Margin 724000 i Less : 493000 Fixed Costs 1.13/3 E e Textbook and Media Attempts: 2 of 5 used (a2) Your answer is partially correct. Prepare a projected CVP income statement for 2020 assuming that changes are made as described. Booth Company CVP Income Statement Sales 18010000 Variable Costs 1122200 Contribution Margin 687800 Less Fixed Costs 493000 Net Income/(Loss) 194800 Your answer is partially correct. Prepare a projected CVP income statement for 2020 assuming that changes are made as described. Booth Company CVP Income Statement Sales 18010000 Variable Costs 1122200 Contribution Margin 687800 Less Fixed Costs 493000 Net Income/(Loss) 194800 e Textbook and Media Attempts: 2 of 5 used Submit Save for Later (b)

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