Wildhorse Company had sales in 2022 of $1,615,600 on 57,700 units. Variable costs totalled $634,700, and fixed costs totalled $834,800. A new raw material is available that will decrease the variable costs per unit by 20% (or $2.20). However, to process the new raw material, fixed operating costs will increase by $40,900. Management feel that one half of the decline in the variable costs per unit 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 10% increase in the number of units sold. Prepare a CVP income statement for 2022: (Round per unit cost to 2 decimal places, e.g. 15.25.)

(a) Assuming the changes have not been made

(b) Assuming that changes are made as described.