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Carey Company had sales in 2016 of $1,768,500 on 65,500 units. Variable costs totaled $1,048,000, and fixed costs totaled $513,000. w raw material is available
Carey Company had sales in 2016 of $1,768,500 on 65,500 units. Variable costs totaled $1,048,000, and fixed costs totaled $513,000. w raw material is available that will decrease the variable costs per unit by 20% (or S 3.20). However, to process the new raw material, fixed operating costs will increase by $91,000. Management feels that one-ha 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 5% increase in the nu of 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 0 decimal places, e.g. 1,225.) CAREY COMPANY CVP Income Statement Total Per Unit (b) Prepare a projected CVP income statement for 2017, assuming that changes are made as described. (Round per unit cost 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 9 Total Per Unit
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