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Booth Company had sales in $2020$ of $$1,875,000$ on $75,000$ units. Variable costs totaled $$1,125,000$ and fixed costs totaled $$500,000.$

A new raw material is available that will decrease the variable costs per unit by $20\%($or $$3\mathrm{.}00).$ However, to process the new raw material, fixed operating costs will increase by $$125,000.$ 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.

$($a$1)$

Prepare a projected CVP income statement for $2020$ assuming the changes have not been made.

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