Blossom Company had sales in $2024$ of $$1,200,000$ on $60,000$ units. Variable costs totaled $$720,000,$ and fixed costs totaled $$400,000.$

A new raw material is avallable that will decrease the unit variable costs by $20\%($or $$2\mathrm{.}40).$ However, to process the new raw material, fixed operating costs will increase by $$80,000.$ Management feels that one half of the decline in the unit variable costs 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 $2025,$ assuming the changes have not been made. $($Round per unit cost to $2$ decimal places, e$8.5\mathrm{.}25$ and all other answers to $0$ decimal places, e$8.1,225.$

$($b$)$ Prepare a projected CVP income statement for $2025,$ assuming that changes are made as described. $($Round per unit cost to $2$ decimal places, es$.5\mathrm{.}25$ and all other answers to $0$ decimal places, eg$.1,225.)$

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