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Question 1 of 6 $

Question 1 of 6 View Policies Current Attempt in Progress Carla Vista Company had sales in 2021 of $1,440,000 on 60,000 units. Variable costs totaled $864,000, and fixed costs totaled $480,000. A new raw material is available that will decrease the unit variable costs by 20% (or $2.88). However, to process the new raw material, fixed operating costs will increase by $96,000. 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 O decimal places, e.g. 1,225.) CARLA VISTA COMPANY CVP Income Statement For the Year Ended December 31, 2022 Sales Variable Costs Contribution Margin Fixed Costs Net Income/(Loss) Total 864,000 576000 480,000 96000 Per unit 24 14_4