how do you do part b

Exercise 19-05 (Video) Vaughn Company had sales in 2019 of $1,831,200 on 65,400 units, Variable costs totaled $1,046,400, and fixed costs totaled $450,000 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, foed operating costs will increase by $96,000. 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. VAUGHN COMPANY CVP Income Statement For the Year Ended December 31, 2020 Per Unit 1831200 Variable costs 1046400 Contribution Margin 794800 Fixed Costs 450000 Net Income (Loss) 334800 (b) Prepare a projected CV 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 answer decimal places, e.g. 1,225.) VAUGHN COMPANY CVP Income Statement For the Year Ended December 31, 2020 Total Per Unit CALCULATOR PRINTER VERSION 4 BACK NET Contribution Margin 784800 Fixed Costs 450000 Net Income (Loss) 334800 (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.g. 5.25 and all other answers to o decimal places, e.g. 1,225.) VAUGHN COMPANY CVP Income Statement For the Year Ended December 31, 2020 Per Unit Sales Variable costs Contribution Margin Fixed Costs Net Income/(Loss) . Click if you would like to show Work for this question on Show Work Question Attemptsi 0 of 3 used