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Second picture is just to show drop down options! Thanks Blossom Company had sales in 2021 of $1,530,000 on 60,000 units. Variable costs totaled $918,000,
Second picture is just to show drop down options! Thanks
Blossom Company had sales in 2021 of $1,530,000 on 60,000 units. Variable costs totaled $918,000, and fixed costs totaled $510,000 A new raw material is available that will decrease the unit variable costs by 20% (or $3.06 ). However, to process the new raw mat fixed operating costs will increase by $102,000. 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 w 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 decin places, e.g. 5.25 and all other answers to 0 decimal places, e.g. 1,225.) (b) Prepare a projected CVP income statement for 2022, assuming that changes are made as described. (Round per unit cost to 2 de places, eg. 5.25 and all other answers to 0 decimal places, e.g. 1,225.) rund per unit cost to 2 decimalStep by Step Solution
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