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Current Attempt in Progress Carey Company had sales in 2019 of 51,792.000 on 64,000 units. Variable costs totaled $1.152,000, and fowed costs totaled $479,000 A
Current Attempt in Progress Carey Company had sales in 2019 of 51,792.000 on 64,000 units. Variable costs totaled $1.152,000, and fowed costs totaled $479,000 A new raw material is available that will decrease the variable costs per unit by 20% for $3.60). However, to process the new raw material, fixed operating costs will increase by $98,000. 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 $ :) : :) 1 [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, es 1,225.) CAREY COMPANY CVP Income Statement Total Per Unit $ $ :) :) 1 :) :)
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