Carey Company had sales in 2016 of $1,766,800 on 63,100 units. Variable costs totaled $1,009,600, and fixed costs totaled $499,000. A new raw material is available that will decrease the variable costs per unit by 20% (or $3.20). However, to process the new raw material, fixed operating costs will increase by $98,000. Management feels that one-half 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 a 5% increase in the number of units sold. (a) Prepare a projected CVP income statement for 2017, assuming the changes have not been made. (Round per unit cost to 2 decimal places, e.g. 5.25 and all other answers to O decimal places, e.g. 1,225.) CAREY COMPANY CVP Income Statement Total Per Unit Sales 1766800 28 Variable Costs 1009600 16 Contribution Margin- 757200 Fixed Costs 499000 Net Income/(Loss) 258200 (b) Prepare a projected CVP income statement for 2017, assuming that changes are made as described. (Round per to 2 decimal places, e.g.5.25 and all other answers to 0 decimal places, e.g. 1,225.) CAREY COMPANY CVP Income Statement Total Per Unit Sales 1749132 Variable Costs 848064 Contribution Margin 901068 Fixed Costs 597000 Net Income/(Loss) 235000