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View Policies Current Attempt in Progress Blossom Company had sales in 2 0 2 1 of $ 1 , 5 3 0 , 0 0

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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 material, 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 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.5.25 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 decimal places, e.g.5.25 and all other answers to 0 decimal places, e.g.1,225.)
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