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Carla Vista Company had sales in 2021 of $1.770,000 on 60,000 units. Variable costs totaled $1.062.000, and fixed costs totaled $590,000 A new raw material
Carla Vista Company had sales in 2021 of $1.770,000 on 60,000 units. Variable costs totaled $1.062.000, and fixed costs totaled $590,000 A new raw material is available that will decrease the unit variable costs by 20% (or $3.54). Howeverto process the new raw material, fixed operating costs will increase by $118,000, Management feels that one half of the decline in the unit variable costs 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 2022, assuming the changes have not been made. (Round per unit cost to 2 decimal places, eg: 5.25 and all other answers to decimal places, eg. 1,225.) Question 6 of 12 (a) Prepare a projected CVP income statement for 2Uzz, assuming the changes have not been made. (RO places, e.g. 5.25 and all other answers to 0 decimal places, eg. 1,225.) CARLA VISTA COMPANY CVP Income Statement Total Per Unit $ > $
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