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**Just need help with the ones I got wrong, thank you** Your answer is partially correct. Try again. Carey Company had sales in 2016 of
**Just need help with the ones I got wrong, thank you**
Your answer is partially correct. Try again. Carey Company had sales in 2016 of $1,811,600 on 64,700 units. Variable costs totaled $905,800, and fixed costs totaled $493,000. A new raw material is available that will decrease the variable costs per unit by 20% (or $2.80). However, to process the new raw material, fixed operating costs will increase by $98,000. 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 2017, assuming the changes have not been made. (Round per unit cost to 2 decimal places, e.g. 5.25 and all other answers to O decimal places, e.g. 1,225.) CAREY COMPANY CVP Income Statement For the Year Ended December 31, 2017 Total Per Unit Sales A 1,811,600 Variable Costs T 905,800 Contribution Margin 905,800 Fixed Costs 493,000 Net Income/(Loss) 412800 (b) Prepare a projected CVP income statement for 2017, 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.) CAREY COMPANY CVP Income Statement For the Year Ended December 31, 2017 Total Per Unit Sales T 1807071 26.6 Variable Costs 876,156 Contribution Margin 1082431 Fixed Costs 591000 Net Income/(Loss) 491431 Click if you would like to Show Work for this question: Open Show WorkStep by Step Solution
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