Carey Company had sales in 2016 of $ 1,803,200 on 64,400 units. Variable costs totaled $ 1,159,200, and fixed costs totaled $ 478,000. A new raw material is available that will decrease the variable costs per unit by 20% (or $ 3.60). However, to process the new raw material, fixed operating costs will increase by $ 104,000. Management feels that one-half 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 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 0 decimal places, e.g. 1,225.)

CAREY COMPANY CVP Income Statement choose the accounting periodchoose the accounting period For the Quarter Ended December 31, 2017December 31, 2017For the Year Ended December 31, 2017
		Total		Per Unit
select an income statement itemselect an income statement item Variable CostsTotal Fixed ExpensesGross ProfitAdministrative ExpensesContribution MarginCost of Goods SoldTotal Variable ExpensesSalesSelling ExpensesNet Income/(Loss)Fixed Costs		$ enter a dollar amount		$ enter a dollar amount per unit rounded to 2 decimal places
select an income statement itemselect an income statement item Administrative ExpensesVariable CostsCost of Goods SoldGross ProfitContribution MarginSelling ExpensesTotal Fixed ExpensesTotal Variable ExpensesSalesNet Income/(Loss)Fixed Costs		enter a dollar amount		enter a dollar amount per unit rounded to 2 decimal places
select a summarizing lineselect a summarizing line Contribution MarginNet Income/(Loss)Total Variable ExpensesTotal Fixed ExpensesAdministrative ExpensesVariable CostsSalesSelling ExpensesCost of Goods SoldGross ProfitFixed Costs		enter a total of the two previous amounts		$ enter a total of the two previous per unit amounts rounded to 2 decimal places
select an income statement itemselect an income statement item Contribution MarginGross ProfitVariable CostsAdministrative ExpensesTotal Variable ExpensesFixed CostsSalesCost of Goods SoldNet Income/(Loss)Selling ExpensesTotal Fixed Expenses		enter a dollar amount
select a closing name for this statementselect a closing name for this statement SalesGross ProfitAdministrative ExpensesNet Income/(Loss)Total Variable ExpensesCost of Goods SoldFixed CostsVariable CostsContribution MarginTotal Fixed ExpensesSelling Expenses		$ enter a total net income or loss amount

(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 choose the accounting periodchoose the accounting period December 31, 2017For the Year Ended December 31, 2017For the Quarter Ended December 31, 2017
		Total		Per Unit
select an income statement itemselect an income statement item Gross ProfitTotal Fixed ExpensesSalesSelling ExpensesVariable CostsFixed CostsCost of Goods SoldAdministrative ExpensesContribution MarginTotal Variable ExpensesNet Income/(Loss)		$ enter a dollar amount		$ enter a dollar amount per unit rounded to 2 decimal places
select an income statement itemselect an income statement item SalesSelling ExpensesVariable CostsFixed CostsCost of Goods SoldTotal Variable ExpensesAdministrative ExpensesContribution MarginTotal Fixed ExpensesNet Income/(Loss)Gross Profit		enter a dollar amount		enter a dollar amount per unit rounded to 2 decimal places
select a summarizing lineselect a summarizing line Fixed CostsTotal Variable ExpensesAdministrative ExpensesContribution MarginTotal Fixed ExpensesSalesCost of Goods SoldNet Income/(Loss)Variable CostsGross ProfitSelling Expenses		enter a total of the two previous amounts		$ enter a total of the two previous per unit amounts rounded to 2 decimal places
select an income statement itemselect an income statement item Gross ProfitNet Income/(Loss)Total Fixed ExpensesContribution MarginVariable CostsAdministrative ExpensesSelling ExpensesCost of Goods SoldFixed CostsSalesTotal Variable Expenses		enter a dollar amount
select a closing name for this statementselect a closing name for this statement Total Fixed ExpensesContribution MarginTotal Variable ExpensesSalesGross ProfitFixed CostsNet Income/(Loss)Variable CostsCost of Goods SoldSelling ExpensesAdministrative Expenses		$ enter a total net income or loss amount