Blossom Company had sales in 2024 of $1,530,000 on 60,000 units. Variable costs totaled $918,000, and fixed costs totaled $510,000. A new raw material is available that will decrease the unit variable costs by 20% (or $3.06). However, to process the new raw material, fixed operating costs will increase by $102,000. 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.g. 5.25 and all other answers to 0 decimal places, e.g. 1,225.) > > BLOSSOM COMPANY CVP Income Statement $ Total SA Per Unit

5510000 fored operating costs wal increase by $102.000, Management feets that one half of the decthe in the unit var fathle costs should be reuit in a 5% increase in the nues ber of units sold. places es 5.25 and all ecther aniwert to 0 dedimal places es 1225 ) (b) Prepare a projected CVP income statement for 2025, assuming that changes are made as described iRound por unit cost in 2 decimal ploces, es 5.25 and all other answers to 0 decimal ploces, es. 1.225) Blossom Company had sales in 2024 of $1,530,000 on 60,000 units. Variable costs totaled $918,000, and fixed costs totaled $510,000 A new raw material is available that will decrease the unit variable costs by 20% (or $3.06 ). However, to process the new raw material, fuxed operating costs will increase by $102,000. 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, es. 5.25 and all other answers to 0 decimol places, es. 1,225 J