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Exercise 6-5 (Video) Carey Company had sales in 2019 of $1,842.400 on 65,800 units. Variable costs totaled $1,184,400, and fixed costs totaled $498,000. A new

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Exercise 6-5 (Video) Carey Company had sales in 2019 of $1,842.400 on 65,800 units. Variable costs totaled $1,184,400, and fixed costs totaled $498,000. A new raw material is available that will decrease the variable costs per unit by 20% (or $3.60). However, to process the new raw material, fixed operating costs will increase by $90,000 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 Variable costs Contribution Margin Fixed Cous Net Income/(06) (b) Prepare a projected CVP Income statement for 2020, assuming that changes are made as described. (Round per unit cost to 2 decimal places, e... 5.25 and all other answers to o decimal places, e.g. 1,225.) CAREY COMPANY CVP Income Statement Total Per Unit Sales Variable costs Click if you would like to Show Work for this questioni Open Show Work

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