Ivanhoe Company had sales in 2021 of $ 1,620,000 on 60,000 units. Variable costs totaled $ 972,000, and fixed costs totaled $ 540,000. A new raw material is available that will decrease the unit variable costs by 20% (or $ 3.24). However, to process the new raw material, fixed operating costs will increase by $ 108,000. Management feels that one half of the decline in the unit variable costs 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 2022, assuming the changes have not been made. (Round per unit cost to 2 decimal places, e.g. 5.25 and all other answers to 0 decimal places, e.g. 1,225.)

IVANHOE COMPANY CVP Income Statement choose the accounting period For the Quarter Ended December 31, 2022December 31, 2022For the Year Ended December 31, 2022
		Total		Per Unit
select an item Total Fixed ExpensesSalesNet Income/(Loss)Cost of Goods SoldTotal Variable ExpensesVariable CostsContribution MarginSelling ExpensesAdministrative ExpensesFixed CostsGross Profit		$ enter a dollar amount		$ enter a dollar amount rounded to 2 decimal places
select an item Gross ProfitAdministrative ExpensesNet Income/(Loss)Total Variable ExpensesTotal Fixed ExpensesContribution MarginVariable CostsSalesSelling ExpensesFixed CostsCost of Goods Sold		enter a dollar amount		enter a dollar amount rounded to 2 decimal places
select a summarizing line for the first part Selling ExpensesVariable CostsTotal Variable ExpensesContribution MarginCost of Goods SoldFixed CostsNet Income/(Loss)Administrative ExpensesGross ProfitTotal Fixed ExpensesSales		enter a total amount for the first part		$ enter a total amount per unit rounded to 2 decimal places
select an item Net Income/(Loss)Variable CostsFixed CostsContribution MarginAdministrative ExpensesTotal Fixed ExpensesSalesGross ProfitSelling ExpensesCost of Goods SoldTotal Variable Expenses		enter a dollar amount
select a closing name for this statement Variable CostsFixed CostsTotal Variable ExpensesSalesAdministrative ExpensesSelling ExpensesNet Income/(Loss)Contribution MarginGross ProfitCost of Goods SoldTotal Fixed Expenses		$ enter a total amount for this statement

(b) Prepare a projected CVP income statement for 2022, assuming that changes are made as described. (Round per unit cost to 2 decimal places, e.g. 5.25 and all other answers to 0 decimal places, e.g. 1,225.)

IVANHOE COMPANY CVP Income Statement choose the accounting period December 31, 2022For the Year Ended December 31, 2022For the Quarter Ended December 31, 2022
		Total		Per Unit
select an item Gross ProfitTotal Fixed ExpensesFixed CostsContribution MarginSalesCost of Goods SoldTotal Variable ExpensesSelling ExpensesNet Income/(Loss)Administrative ExpensesVariable Costs		$ enter a dollar amount		$ enter a dollar amount rounded to 2 decimal places
select an item SalesGross ProfitTotal Variable ExpensesTotal Fixed ExpensesFixed CostsAdministrative ExpensesContribution MarginCost of Goods SoldNet Income/(Loss)Variable CostsSelling Expenses		enter a dollar amount		enter a dollar amount rounded to 2 decimal places
select a summarizing line for the first part Gross ProfitContribution MarginTotal Fixed ExpensesFixed CostsTotal Variable ExpensesSelling ExpensesAdministrative ExpensesVariable CostsNet Income/(Loss)Cost of Goods SoldSales		enter a total amount for the first part		$ enter a total amount per unit rounded to 2 decimal places
select an item Gross ProfitSelling ExpensesNet Income/(Loss)Fixed CostsAdministrative ExpensesTotal Variable ExpensesContribution MarginTotal Fixed ExpensesVariable CostsSalesCost of Goods Sold		enter a dollar amount
select a closing name for this statement Fixed CostsGross ProfitTotal Fixed ExpensesVariable CostsAdministrative ExpensesTotal Variable ExpensesCost of Goods SoldSelling ExpensesNet Income/(Loss)SalesContribution Margin		$ enter a total amount for this statement