Booth Company had sales in $2020$ of $$1,875,000$ on $75,000$ units. Variable costs totaled $$1,125,000$ and fixed costs totaled $$500,000.$

A new raw material is available that will decrease the variable costs per unit by $20\%($or $$3\mathrm{.}00).$ However, to process the new

material, fixed operating costs will increase by $$125,000.$ 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.Before Booth Company had the chance to implement usage of the new raw material, new industry specifications were announced

and result in the following changes for the Booth Company. Variable costs will increase by $15\%$ per unit and fixed costs will

increase by $$50,000.$ Management feels that a $$3$ per unit price increase is needed to accommodate the cost increases. However,

this will result in a $10\%$ decrease in units sold. Prepare a CVP income statement assuming these changes have been made.

Booth Company

CVP Income Statement

For the Year Ended December $31,2020$

$

Net Income$/($Loss$)$

$