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Carey Company had sales in 2019 of $1.792.200 on 61,800 units. Variable costs totaled $865,200, and foxed costs totaled $487.000. A new raw material is

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Carey Company had sales in 2019 of $1.792.200 on 61,800 units. Variable costs totaled $865,200, and foxed costs totaled $487.000. A new raw material is available that will decrease the variable costs per unit by 20% for $2.80). However, to process the new raw material, fixed operating costs will increase by $107.000. 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 Total Per Unit (b) Prepare a projected CVP income statement for 2020, assuming that changes are made as described. (Round per unit cost to 2 decimal places, es. 5.25 and all other answers to decimal places, e3. 1.225) CAREY COMPANY CVP Income Statement Total Per Unit

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