Exercise 19-05 * Your answer is incorrect. Try again Carey Company had sales in 2019 of $1,727.600 on 61,700 units. Variable costs totaled $987,200, and fixed costs totaled $456,000 A new raw material is available that will decrease the variable costs per unit by 20% (or $3.20). However, to process the new raw material fixed operating costs will increase by $101,000. 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 For the Quarter Ended December 31, 20200 Selling Expenses Gost G old Administrative Expenses CALCULATOR FULL SCREEN PRINTER VERSION BACK (b) Prepare a projected CVP Income statement for 2020, assuming that changes are made as described. (Round per unit cost to 2 decimal places, eg. 5.25 and all other answers to decimal places, e.g. 1,225.) CAREY COMPANY CVP Income Statement Per Unit Gross Profit Gross Profit TO wpenses Gross Profit Selling Expenses