I need help with part C. (Last photo)

Show Attempt History Current Attempt in Progress Booth Company had sales in 2020 of $1,695,000 on 67,800 units. Variable costs totaled $1,017.000 and fixed costs totaled $452,000. A new raw material is available that will decrease the variable costs per unit by 20% (or $3.00). However, to process the new raw material fixed operating costs will increase by $127,000. 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) Your answer is correct. Prepare a projected CVP Income statement for 2020 assuming the changes have not been made. Booth Company CVP Income Statement For the Year Ended December 31, 2020 $ : : Sales Variable Costs Contribution Margin Less :: Foxed Costs 1.695,000 1,017,000 678000 452,000 i Net Income/(Loss) : 226,000 (a2) Your answer is correct. Prepare a projected CVP income statement for 2020 assuming that changes are made as described. Booth Company CVP Income Statement For the Year Ended December 31, 2020 Sales 1621776 Variable Costs 846144 775632 Contribution Margin Less & Fixed Costs Net Income/(Loss) 579000 196632 e Textbook and Media Attempts: 10 Your answer is correct Your answer is correct. Before Booth Company had the chance to implement usage of the new raw material, new industry specifications were announced and result in the following changes for the Booth Company. Variable costs will increase by 15% per unit and fixed costs will increase by $53,000. Management feels that a $3 per unit price increase is needed to accommodate the cost increases. However, this will result in a 10% decrease in units sold. Prepare a CVP income statement assuming these changes have been made. Booth Company CVP Income Statement For the Year Ended December 31, 2020 Sales 1708560 0 1052595 Variable Costs Contribution Margin Less :: Fixed Costs 655965 505000 i Net Income/(Loss) . 150965 eTextbook and Media Assistance Used Attempts: 2 of 5 used Your answer is partially correct. The marketing department suggests implementing an advertising promotion that would increase variable costs by $0.50 per unit but would retain the original sales volume of 67,800 units. Prepare a CPV income statement with these changes. Use the information in part (b) to complete this section Booth Company CVP Income Statement For the Year Ended December 31, 2020 3 1695000 1050900 Sales Variable Costs Contribution Margin Less :: Fixed Costs Net Income/Loss) 644100 505000 : 139100 Do you recommend implementation of the advertising program? Why or why not? The implementation of the advertising program is recommended as the net income would increase Assistance Used e Textbook and Media eTextbook Attempts: 3 of 5 used Submit Answer Save for Later