Sheridan Company had sales in $2021$ of $$1,710,000$ on $60,000$

units. Variable costs totaled $$1,026,000,$ and fixed costs totaled

$$570,000.$ A new raw material is available that will decrease the

unit variable costs by $20\%($or $$3\mathrm{.}42).$ However, to process the new

raw material, fixed operating costs will increase by $$114,000.$

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$.5\mathrm{.}25$ 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