Carey Company had sales in 2019 of $1,609.400 on 61,900 units. Variable costs totaled $866.600, and fixed costs totaled $475,000 A new raw material is available that will decrease the variable costs per unit by 20% (or $2.80). However, to process the new ra material, fixed operating costs will increase by $90,000. 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 2020, assuming the changes have not been made. CAREY COMPANY CVP Income Statement For the Year Ended December 31, 2020 Total 500000 Sales Variable Costs 70000 Contribution Margin 430000 Fixed Costs Net Income/(Loss) 100000 330000 Per Unit 100 14 1 84 (b) Prepare a projected CVP income statement for 2020, assuming that changes are made as described. (Round per unit cost to 2 decimal places, e.g. 5.25 and all other answers to O decimal places, e.g. 1,225.) (b) Prepare a projected CVP income statement for 2020, assuming that changes are made as described. (Round per unit cost to 2 decimal places g. 5.25 and all other answers to O decimal places, eg 1.225) CAREY COMPANY CVP Income Statement For the Year Ended December 31, 2020 Sales Total 517650 Variable Costs 58800 Contribution Margin 458850 $ Fixed Costs 190000 Net Income/(Loss) 268850 Per Unit 11.2 98.6 874