Please explain how to do the second part of the question.

Hall Company had sales in 2014 of $1,665,900 on 61,700 units. Variable costs totaled $987,200, and fixed costs totaled $401,500. A new raw material is available that will decrease the variable costs per unit by 27% (or $4.32). However, to process the new raw material, fixed operating costs will increase by $156,600. 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. Prepare a projected CVP income statement for 2014, 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.)