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(b) Current Attempt in Progress Volmar Company had sales in 2020 of $1,541,700 on 57,100 units. Variable costs totalled $628,100, and fixed costs totalled $785,600.
(b)
Current Attempt in Progress Volmar Company had sales in 2020 of $1,541,700 on 57,100 units. Variable costs totalled $628,100, and fixed costs totalled $785,600. A new raw material is available that will decrease the variable costs per unit by 20% (or $2.20). However, to process the new raw material, fixed operating costs will increase by $47,900. Management feel 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 10% increase in the number of units sold. Prepare a CVP income statement for 2020: (Round per unit cost to 2 decimal places, e.g. 15.25.) (a) Assuming the changes have not been made: VOLMAR COMPANY CVP Income Statement (Unchanged) Total Per Unit $ > $ $ (b) Assuming that changes are made as described. VOLMAR COMPANY CVP Income Statement (with changes) Total Per Unit
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