Booth Company had sales in 2020 of $2,010,000 on 80,400 units. Variable costs totaled $1,206,000 and fixed costs totaled $515,000. 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 $123,000. 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. (a1) Your answer is partially correct. Prepare a projected CVP income statement for 2020 assuming the changes have not been made. Booth Company CVP Income Statement For the Year Ended December 31, 2020 Sales $ 1923168 Variable Costs 964800 Contribution Margin 958368 Less : Fixed Costs 638000 Net Income/(Loss) GA 320368