help

$473,000 A new raw materiat is available that will decrease the variable costs per unit by 20% (or 53.00 ). However, to process the new raw material, fuxed operating costs will increase by $114,000. Management feels that two-thirds 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 4% increase in the number of units sold. (a1) Prepare a projected CVP income statement for 2020 assuming the changes have not been made