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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 of $ on units. Variable costs totaled $ and fixed costs totaled $
A new raw material is available that will decrease the unit variable costs by or $ However, to process the new raw material, fixed operating costs will increase by $ 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 increase in the number of units sold.
a Prepare a projected CVP income statement for assuming the changes have not been made. Round per unit cost to decimal places, eg and all other answers to decimal places, eg
b Prepare a projected CVP income statement for assuming that changes are made as described. Round per unit cost to decimal places, eg and all other answers to decimal places, eg
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