Carla Vista Company had sales in 2022 of $1,398,800 on 53,800 units. Variable costs totalled $699,400, and fixed costs totalled $550,200. A new raw material is available that will decrease the variable costs per unit by 20% (or $2.60). However, to process the new raw material, fixed operating costs will increase by $41,700. Management feel 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 10% increase in the number of units sold. Prepare a CVP income statement for 2022: (Round per unit cost to 2 decimal places, e.g. 15.25.) (a) Assuming the changes have not been made:

CARLA VISTA COMPANY CVP Income Statement (Unchanged) choose the accounting period December 31, 2022For the Month Ended December 31, 2022For the Year Ended December 31, 2022
		Total		Per Unit
select a CVP income statement item Variable costsOperating incomeSalesFixed costsContribution margin		$enter a dollar amount		$enter a dollar amount rounded to 2 decimal places
select a CVP income statement item Contribution marginOperating incomeFixed costsSalesVariable costs		enter a dollar amount		enter a dollar amount rounded to 2 decimal places
select a summarizing line for the first part Operating incomeSalesVariable costsFixed costsContribution margin		enter a total amount for the first part		$enter a total amount per unit rounded to 2 decimal places
select a CVP income statement item SalesOperating incomeFixed costsVariable costsContribution margin		enter a dollar amount
select a closing name for this statement Fixed costsSalesOperating incomeContribution marginVariable costs		$enter a total amount for this statement

(b) Assuming that changes are made as described.

CARLA VISTA COMPANY CVP Income Statement (with changes) choose the accounting period December 31, 2022For the Month Ended December 31, 2022For the Year Ended December 31, 2022
		Total		Per Unit
select a CVP income statement item Operating incomeContribution marginVariable costsSalesFixed costs		$enter a dollar amount		$enter a dollar amount rounded to 2 decimal places
select a CVP income statement item Variable costsContribution marginOperating incomeFixed costsSales		enter a dollar amount		enter a dollar amount rounded to 2 decimal places
select a summarizing line for the first part SalesOperating incomeVariable costsFixed costsContribution margin		enter a total amount for the first part		$enter a total amount per unit rounded to 2 decimal places
select a CVP income statement item SalesVariable costsContribution marginFixed costsOperating income		enter a dollar amount
select a closing name for this statement Contribution marginOperating incomeVariable costsSalesFixed costs		$enter a total amount for this statement