Booth Company had sales in 2020 of $1,915,000 on 76,600 units. Variable costs totaled $1,149,000 and fixed costs totaled $471,000. A new raw material is available that will decrease the variable costs per unit by 20% (or $3.00). However, to process the new raw material, fixed operating costs will increase by $136,000. 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.

Safari File Edit View History Bookmarks Window Help B O ~ Q 2 0 Fri May 6 7:27 PM . . . ! ~ h D education.wiley.com + 88 Bb Week 5 - Managerial Accounting AC.. W NWP Assessment Builder UI Applicat. W NWP Assessment Player UI Applicati Homework Help - Q&A from Online T... Take a screenshot on your Mac - Ap.. kems Week 5 - Assignment: Chapter 6 Question 1 of 1 63.33 / 95 not 10 PM The marketing department suggests implementing an advertising promotion that would increase variable costs by $0.50 per unit but would retain the original sales volume of 76,600 units. Prepare a CPV income statement with these changes. Use the information in part (b) to complete this section. lot Booth Company 14 PM CVP Income Statement not to 19 PM lot 28 PM + $ lot 41 PM Do you recommend implementation of the advertising program? Why or why not? The implementation of the advertising program is as the net income would W