Current Attempt in Progress

Sunland Company had sales in $2022$ of $$1,533,600$ on $56,800$ units. Variable costs totalled $$568,000,$ and fixed costs totalled $$838,900.$

A new raw material is available that will decrease the variable costs per unit by $20\%($or $$2\mathrm{.}00).$ However, to process the new raw material, fixed operating costs will increase by $$35,000.$ 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$.15\mathrm{.}25.)$

$($a$)$ Assuming the changes have not been made:

SUNLAND COMPANY

$($b$)$ Assuming that changes are made as described.

$\backslash$table$[[$SUNLAND COMPANY,$],[$CVP Income Statement $($with changes$),],[$$$1,$Total$]]$