Bonita Company had sales in $2025$ of $1690000$ on $67600$ units. Variable costs totaled $1014000$ and dixefixed costs totaled $490000.$

A benew raw material is available that will decrease the variable costs per unit y $20\%($or $3\mathrm{.}00).$ However, to process the new raw material, fixing ipeoperating costs will increase by $126000.$ Management feels that Two$-$thirds of the decline in the variable cost 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 the number of units sold.

a$1$ Prepare a projected CVP income statement for $2025$ assuming the charges have not been made.

a$2$ Prepare a projected CVP income statement for $2025$ assuming that changes are made as decscribed.