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Carey Company had sales in 2019 of $1,822,800 on 65,100 units. Variable costs totaled $911,400, und fand costs totaled 5457.000 A new raw material is
Carey Company had sales in 2019 of $1,822,800 on 65,100 units. Variable costs totaled $911,400, und fand costs totaled 5457.000 A new raw material is available that will decrease the variable costs per unit by 20 for $2.801. However, to process the new raw material, foed operating costs will increase by $109,000. 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 charges are made as described. (Round per unit cost to 2 decimal places, es 5.25 and all other answers to decimal places, es 1.225) CAREY COMPANY CVP Income Statement . Total Per Unit . $ $
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